Open-Economy Inflation Targeting
TL;DR: The authors extended previous analysis of closed-economy inflation targeting to a small open economy with forward-looking aggregate supply and demand, and with stylized realistic lags in the different transmission channels for monetary policy.
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Abstract: The paper extends previous analysis of closed-economy inflation targeting to a small open economy with forward-looking aggregate supply and demand, and with stylized realistic lags in the different transmission channels for monetary policy. The paper compares targeting of CPI and domestic inflation, strict and exhibitable inflation targeting, inflation targeting instrument rules and the Taylor Rule, and inflation targeting and exchange-rate targeting. The paper also clarifies how a conditional inflation forecasts can be consistently constructed and used as an intermediate target variable when there are forward-looking expectations.
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Citations
Towards Price Stability in Tanzania During Economic Reforms: Does Fiscal Discipline Matter?
TL;DR: In this paper, the authors investigated the extent to which prudent fiscal policy of the government in Tanzania accounted for successful containment of inflation during the period 1980 to 2010 and found that over the short run period, budget deficits were an insignificant determinant of inflation in Tanzania.
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Estimating the COP Exchange Rate Volatility Smile and the Market Effect of Central Bank Interventions: A CHARN Approach
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Inflation Targeting and Exchange Rate Management in Korea
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Compensating Commitments: The Law and Economics of Commitment Bonds That Compensate for the Possibility of Forfeiture
Michael Abramowicz,Ian Ayers +1 more
TL;DR: In this article, compensating commitment bonds, which make it more affordable for a government, entity, or individual to commit to some course of action, have been proposed to facilitate legislative compromise or the settlement of private legal disputes.
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TL;DR: In this article, it is shown that the ideal central bank should place a large, but finite, weight on inflation, and a new framework for choosing among alternative intermediate monetary targets is proposed.
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An Optimization-Based Econometric Framework for the Evaluation of Monetary Policy
TL;DR: In this paper, a simple quantitative model of output, interest rate and inflation determination in the United States, and uses it to evaluate alternative rules by which the Fed may set interest rates.
Inflation Targeting: A New Framework for Monetary Policy?
TL;DR: Inflation targeting as discussed by the authors is a new strategy for monetary policy known as "inflation targeting," which has sparked much interest and debate among central bankers and monetary economists in recent years, characterized by the announcement of official target ranges for the inflation rate at one or more horizons, and explicit acknowledgment that low and stable inflation is the overriding goal of monetary policy.