منابع مشابه
Core inflation and monetary policy
What are the implications of targeting different measures of inflation? We extend a basic theoretical framework of optimal monetary policy under inflation targeting to include several components of CPI inflation, and analyze the implications of using different measures of inflation as target variable— core inflation, CPI excluding interest rates, and headline CPI inflation. Our main results are...
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This paper shows that plausible modifications to the Taylor rule for monetary policy can help explain several empirical anomalies to the behavior of inflation in the new-Keynesian general equilibrium model. The key anomalies considered are (1) the persistence of inflation, both in reduced form and after conditioning on inflation’s driving processes, (2) the positive correlation between the outp...
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The fact that U.S. inflation has been remarkably low and stable over the past two decades prompts questions as to whether or not inflation persistence has changed to a lower level too. This paper employs the recently developed structural stability test with multiple regime shifts to model U.S. inflation dynamics over the past half century. Our empirical results suggest that the persistence of i...
متن کاملInflation Dynamics and Inflation Regimes
In this paper we develop and estimate a new-Keynesian model of inflation and use it to investigate the hypothesis that prices in the UK are re-set more frequently during periods of high inflation. In the model, firms are assumed to condition their expectations on an optimally-selected but incomplete information set and we further assume that the probability that they will reset their price in a...
متن کاملMonetary Policy Regimes and Beliefs
This paper investigates the role of beliefs over monetary policy in propagating the effects of monetary policy within the context of a dynamic, stochastic general equilibrium model. In our model, monetary policy periodically switches between low and high money growth regimes. When individuals are unable to directly observe the current regime, they will assign some probability to the low money g...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2003
ISSN: 1556-5068
DOI: 10.2139/ssrn.494222