Inflation targeting with NAIRU uncertainty and endogenous policy credibility
Read Online
Share

Inflation targeting with NAIRU uncertainty and endogenous policy credibility

  • 687 Want to read
  • ·
  • 45 Currently reading

Published by International Monetary Fund, Research Department in [Washington, D.C.] .
Written in English

Subjects:

  • Inflation (Finance) -- Econometric models.,
  • Monetary policy -- Econometric models.,
  • Unemployment -- Econometric models.,
  • Anti-inflationary policies -- Econometric models.

Book details:

Edition Notes

StatementPeter Isard, Douglas Laxton and Ann-Charlotte Eliasson.
GenreEconometric models.
SeriesIMF working paper -- WP/01/7
ContributionsLaxton, Douglas., Eliasson, Ann-Charlotte, 1953-, International Monetary Fund. Research Dept.
The Physical Object
Pagination40 p. :
Number of Pages40
ID Numbers
Open LibraryOL19868272M

Download Inflation targeting with NAIRU uncertainty and endogenous policy credibility

PDF EPUB FB2 MOBI RTF

  Stochastic simulations are employed to compare performance of monetary policy rules in linear and nonlinear variants of a small macro model with NAIRU uncertainity under different assumptions about the way inflation expectations are : Peter Isard, Douglas Laxton, Ann-Charlotte Eliasson. Cases in which policy credibility is ignored or treated as exogenous are distinguished from cases in which credibility and inflation expectations respond endogenuously policy credibility strengthens the case for forward-looking inflation forecast based rules relative to backward-looking Taylor rules. Inflation Targeting with NAIRU Uncertainty and Endogenous Policy Credibility Stochastic simulations are employed to compare performance of monetary policy rules in linear and nonlinear variants of a small macro model with NAIRU uncertainity under different assumptions about the way inflation expectations are formed. Model features include: endogenous policy credibility; non-linearities in the inflation process; and a policy loss function that aims to minimize the variability of output and the interest rate.

Title: Inflation Targeting with NAIRU Uncertainty and Endogenous Policy Credibi lty - WP/01/7 Created Date: 2/3/ AMAuthor: Peter Isard, Douglas Laxton, Ann-Charlotte Eliasson. Inflation Targeting with NAIRU Uncertainty and Endogenous Policy Credibility policy credibility is ignored or treated as exogenous are distinguished from cases in which credibility and inflation expectations respond endogenuously policy credibility strengthens the case for forward-looking inflation forecast based rules relative to backward. Download PDF: Sorry, we are unable to provide the full text but you may find it at the following location(s): (external link). Inflation Targeting, Credibility and Confidence Crises Rafael Santos August, its credibility, and the ination target level. Based on a model developed in the spirit of the global games literature, we argue that whenever a weak central bank adopts a high degree 2 Common Uncertainty Model with Endogenous Credibility.

Isard, Peter, and Douglas Laxton. and Ann-Charlotte Eliasson (). “Inflation Targeting with NAIRU Uncertainty and Endogenous Policy Credibility.” ForthcomingJournal of Economic Dynamics and Control. Google ScholarCited by: policy rules in a model with endogenous policy credibility, a convex Phillips curve, and monetary authorities who update their estimates of the NAIRU period by period using information about unemployment, inflation, and the structure of the model. 6 As a companion to other papers in. Inflation Targeting Lars E.O. Svensson NBER Working Paper No. December JEL No. E42,E43,E47,E52,E58 ABSTRACT Inflation targeting is a monetary-policy strategy that is characterized by an announced numerical inflation target, an implementation of monetary policy that gives a major role to an inflation forecast and hasFile Size: KB. Inflation targeting with NAIRU uncertainty and endogenous policy credibility Author: Peter Isard ; Douglas Laxton ; Ann-Charlotte Eliasson ; International Monetary Fund.