Efficiency and determinacy of equilibrium under inflation targeting (Q1341496): Difference between revisions
From MaRDI portal
Set profile property. |
ReferenceBot (talk | contribs) Changed an Item |
||
Property / cites work | |||
Property / cites work: Self-fulfilling prophecies / rank | |||
Normal rank | |||
Property / cites work | |||
Property / cites work: Q3265896 / rank | |||
Normal rank | |||
Property / cites work | |||
Property / cites work: Monetary policy and price level determinacy in a cash-in-advance economy / rank | |||
Normal rank |
Revision as of 11:11, 23 May 2024
scientific article
Language | Label | Description | Also known as |
---|---|---|---|
English | Efficiency and determinacy of equilibrium under inflation targeting |
scientific article |
Statements
Efficiency and determinacy of equilibrium under inflation targeting (English)
0 references
5 January 1995
0 references
There is increasing interest in conducting monetary policy so as to achieve a given target inflation rate (or price level path). Several policies that have been advocated for this purpose are evaluated on the following criteria: (a) are they consistent with the existence of an equilibrium for a variety of targets? (b) do they support only equilibria with the desired price level behavior, or are other equilibria also possible? (c) even if only the desired price level path is possible, are indeterminacies avoided on other dimensions? (d) if there is a unique equilibrium, does it support an allocation that can be Pareto dominated in equilibrium by an alternative policy mechanism? None of the policies examined performs well on the basis of all these criteria.
0 references
monetary policy
0 references
target inflation rate
0 references