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Optimal Inflation Targets, 'Conservative' Central Banks, and Linear Inflation Contracts

Svensson, Lars E. O. - 1998

Inflation target regimes (like those of New Zealand, Canada, U.K. and Sweden) are interpreted as having explicit inflation targets and implicit employment targets. Without employment persistence, 'an inflation target-conservative' central bank eliminates the inflation bias, mimics an optimal...

Persistent link: https://www.econbiz.de/10014105908

Sacrifice Ratios and Monetary Policy Credibility : Do Smaller Budget Deficits, Inflation-Indexed Debt, and Inflation Targets Lower Disinflation Costs?

Durham, J. Benson - 2002

does not satisfactorily examine key fiscal and monetary policy practices that arguably affect policymaking credibility … addenda, the results generally suggest that credibility proxies are largely sensitive to research design. However, some data …

Persistent link: https://www.econbiz.de/10014122385

Optimal inflation targets, "conservative" central banks, and linear inflation contracts : comment

Beetsma, Roel; Jensen, Henrik - 1998 - Final version: September 1998

may undermine its credibility. We then show that the optimal policy in Svensson's model can nevertheless be attained …

Persistent link: https://www.econbiz.de/10011537370

Unemployment fluctuations and nominal GDP targeting

Billi, Roberto M. - 2020

I evaluate the welfare performance of a target for the level of nominal GDP in a New Keynesian model with unemployment, accounting for a zero lower bound (ZLB) constraint on the nominal interest rate. Nominal GDP targeting is compared to employment targeting, a conventional Taylor rule, and the...

Persistent link: https://www.econbiz.de/10012161495

Inflation Targeting : Lessons from Four Countries

Posen, Adam Simon - 2009

In recent years, a number of central banks have chosen to orient their monetary policy toward the achievement of numerical inflation targets. This study examines the experience of the first three countries to adopt an inflation-targeting strategy - New Zealand, Canada, and the United Kingdom. It...

Persistent link: https://www.econbiz.de/10012766980

Does monetary policy credibility help in anchoring inflation expectations? : evidence from six inflation targeting emerging economies

Güler, Aslı - In: Journal of central banking theory and practice 10 (2021) 1, pp. 93-111

extent to which inflation expectations are formed by the announced targets. As the credibility of the central bank increases … target. Credibility enables expectation to be formed in a forward-looking way by weakening its connection with the past. This … study aims to contribute to the literature concerning the effects of credibility on monetary policy. For this purpose, using …

Persistent link: https://www.econbiz.de/10012548972

Looking through supply shocks versus controlling inflation expectations : understanding the Central Bank dilemma

Beaudry, Paul; Carter, Thomas J.; Lahiri, Amartya - 2022 - Last updated: September 20, 2022

Central banks in most advanced economies have reacted similarly to the increase in inflation that started in 2021. They initially looked through the rising inflation by leaving monetary policy relatively unchanged. Then, after inflation continued to increase, central banks pivoted by quickly...

Persistent link: https://www.econbiz.de/10013370504

Monetary commitment and the level of public debt

Gnocchi, Stefano; Lambertini, Luisa - 2016

We analyze the interaction between committed monetary policy and discretionary fiscal policy in a model with public debt, endogenous government expenditures, distortive taxation and nominal rigidities. Fiscal decisions lack commitment but are Markovperfect. Monetary commitment to an interest...

Persistent link: https://www.econbiz.de/10011431600

Inflation Forecast Targeting : Implementing and Monitoring Inflation Targets

Svensson, Lars E. O. - 1998

**The following is a description of the paper and not the actual abstract.** Inflation targeting is shown to imply inflation forecast targeting: the central bank's inflation forecast becomes an explicit intermediate target. Inflation forecast targeting simplifies both implementation and...

Persistent link: https://www.econbiz.de/10014101962

Mechanisms for Achieving Monetary Stability : Inflation Targeting Versus the Erm

Canzoneri, Matthew B.; Nolan, Charles; Yates, Anthony - 1998

First, we modify the Barro-Gordon model so that a credibility-stabilization tradeoff will remain, even when a … better resolution to the credibility-stabilization tradeoff than the ERM …

Persistent link: https://www.econbiz.de/10014107083