Inflation Targeting and Output Stabilisation
نویسنده
چکیده
Glenn Stevens for helpful comments. The views expressed are those of the author, and not necessarily those of the Reserve Bank of Australia.
منابع مشابه
Has the Adoption of Inflation Targeting Represented a Regime Switch? Empirical evidence from Canada, Sweden and the UK
Since 1990, a growing number of countries have adopted inflation targeting (IT) around the world. Empirical evidence on its advantages has been mixed so far, and most assessments have been based on a control group methodology. In this paper, using a MSVAR technique, we assess the adoption of IT in three industrialised countries over time; in addition, we compare their outcomes with a non-IT cou...
متن کاملOptimal Fiscal Stabilisation through Government Spending
This paper examines under what conditions fiscal policy in the form of government spending should contribute to macroeconomic stabilisation. To this end optimal fiscal targeting rules minimising the microfounded social loss are examined in the following settings. Firstly, for the benchmark New Keynesian model, where monetary policy is unconstrained, a neutrality result for fiscal obtains: fisca...
متن کاملFinancial conditions and nonlinearities in the European Central Bank (ECB) reaction function: In-sample and out-of-sample assessment
The purpose of this study is to investigate how the ECB sets interest rates in the context of both linear and nonlinear policy reaction functions. It contributes to the current debate on central banks having additional objectives over and above inflation and output. Three findings emerge. First, the ECB takes financial conditions into account when setting interest rates. Second, amongst Taylor ...
متن کاملOptimum Currency Areas Under Inflation Targeting
Several countries face the choice between targeting inflation independently and entering a monetary union that targets inflation. The present paper extends the theory of optimum currency areas to deal with this choice. In contrast to the conventional theory, countries might form more of an optimum currency area the more asymmetric supply shocks are. By studying the stabilization properties of i...
متن کاملInflation Targeting and Output Stabilization in Australia
a number of countries, including Australia, over the past decade. The adoption of a framework that focuses explicitly on inflation reflects the growing realization that the major contribution that monetary policy can make to economic growth and welfare in the long run is the maintenance of a low and stable inflation rate. Empirical evidence confirms the detrimental effects of higher inflation o...
متن کامل