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We explore the consequences of losing confidence in the price-stability objective of central banks by quantifying the …
Persistent link: https://www.econbiz.de/10012181222
We show that a monetary policy in which the central bank commits to a randomized inflation target allows for potentially faster-expectations convergence than with a fixed target. The randomized target achieves faster convergence in particular in transition environments: those demonstrating...
Persistent link: https://www.econbiz.de/10003715536
We explore the consequences of losing confidence in the price-stability objective of central banks by quantifying the …
Persistent link: https://www.econbiz.de/10012317310
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