Journal Article10.1016/J.ECONLET.2006.06.022
Inflation persistence and monetary policy: A simple result
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TL;DR: In this article, the authors explore the interaction between monetary policy and structural inflation persistence in the context of a new Keynesian inflation model and find that optimal monetary policy is a function of the relative weight on the output gap in the welfare-theoretic stabilization objective, the responsiveness of inflation to fluctuations in the output, and the perceived degree of inflation persistence.
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About: This article is published in Economics Letters. The article was published on 01 Jan 2007. The article focuses on the topics: Inflation targeting & Monetary policy.
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Citations
Inflation Persistence in BRICS Countries: A Quantile Autoregressive (QAR) Approach
Andrew Phiri
TL;DR: This study applies the Quantile Autoregressive (QAR) approach to investigate inflation persistence in BRICS countries from 1996 to 2016, revealing unit root tendencies in moderate to high inflation rates and varying persistence across time horizons pre- and post-global financial crisis.
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Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy
TL;DR: In this article, the authors present a model embodying moderate amounts of nominal rigidities that accounts for the observed inertia in inflation and persistence in output, and the key features of their model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy.
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Interest and Prices: Foundations of a Theory of Monetary Policy
Michael Woodford
- 01 Jan 2003
TL;DR: Woodford as mentioned in this paper proposes a rule-based approach to monetary policy suitable for a world of instant communications and ever more efficient financial markets, arguing that effective monetary policy requires that central banks construct a conscious and articulate account of what they are doing.
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Interest and prices : foundations of a theory of monetary policy
Michael Woodford
- 01 Jan 2003
TL;DR: Woodford as discussed by the authors proposes a rule-based approach to monetary policy suitable for a world of instant communications and ever more efficient financial markets, arguing that effective monetary policy requires that central banks construct a conscious and articulate account of what they are doing.
5.7K
The Science of Monetary Policy: A New Keynesian Perspective
TL;DR: In contrast to conventional wisdom, this paper showed that gains from commitment may emerge even if the central bank is not trying to inadvisedly push output above its natural level, and also considered the implications of frictions such as imperfect information.