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policy of flexible inflation targeting. A number of simple (but non-optimal) targeting rules are compared. Strict producer … Zentralbanken verwirklicht werden kann, die eine Strategie des flexiblen Inflation Targeting verfolgen. Eine Reihe einfacher (aber …
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For the open economy the workhorse model in intermediate textbooks still is the Mundell-Fleming model, which basically extends the IS-LM model to open economy problems. The purpose of this paper is to present a simple New Keynesian model of the open economy, that introduces open economy...
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inflation. The target rule also depends on the discount factor as well as IS and Phillips Curve parameters. This is in sharp … contrast to a closed economy where the target rule depends only on the change in the output gap, the current rate of inflation …
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