Inflation targeting and nominal-income-growth targeting: When and why are they suboptimal?
نویسندگان
چکیده
منابع مشابه
Inflation targeting and nominal-income-growth targeting: When and why are they suboptimal? ¬リニ
We compare optimal and simple interest-rate rules. Our model features optimizing agents, monopolistic competition in both product and labor markets, and one-period nominal contracts (for wages alone or for both wages and prices) signed before shocks are known. Exact solutions ensure that we obtain correct welfare rankings. Optimal rules maximize the unconditional expected utility of the represe...
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There is widespread agreement that price stability (in practice, low and stable inflation) should be an objective of monetary policy. This agreement is reflected both in the mandates set for monetary policy by governments and in the practice of central banks. Several other important questions about the objectives for monetary policy are less settled: Should there be other objectives? If there a...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2005
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2004.08.010