This paper characterizes optimal monetary policy for a range of alternative economic models, applying the general theory developed in Giannoni and Woodford (2002a). The rules computed here have the advantage of being optimal regardless of the assumed character of exogenous additive disturbances, though other aspects of model specification do affect the form of the optimal rule. In each case, op...

We study optimal monetary policy design in a simple model that deviates from the linear-quadratic paradigm and provides a rationale for the practice of inflation zone targeting. We show that the presence of either zone-quadratic preferences or a zonelinear relationship between inflation and economic activity provides strong incentives to deviate from conventional linear policies. We calibrate t...

a r t i c l e i n f o Several studies including Minea et al. (2012) and Lucotte (2012) emphasize that in emerging countries, the adoption of inflation targeting (IT) monetary policy and its discipline character allow intensifying their efforts to collect tax revenue and/or expenditure rationalization, and allows the reduction of their budget deficits (Kadria and Ben Aissa, 2014). Nevertheless, ...

in present paper, first the concept of informal economy and its place in the economic literature has been described. then the causes and factors involved in providing the informal sector was examined and the volume of informal economy was estimated. second, the effect of inflation on informal economy was surveyed. to estimate the volume of informal sector, residual discrepancy method was used a...

Since it was first introduced by New Zealand and Chile in 1990, Canada in 1991, and the United Kingdom in 1992, inflation targeting (IT) has received a lot of attention in the public and academic debate over the design of monetary policy regimes. In part, this attention reflects the growing number of countries that have adopted an IT regime over the past decade. Schaechter, Stone, and Zelmer (2...

we compare alternative monetary policies for iranian economy that this paper compares alternative monetary policy rules for iranian economy in faces to both internal and external shocks. for this purpose, we investigate the responses of macroeconomic variables respected to the money base and the terms of trade shocks, under three types of monetary rules including fixed exchange rate, inflation ...