Author: Mamdouh Abdelmoula Mohamed AbdelsalamPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Essays on Optimal Inflation Targeting Forecast Based Rules and Inflation Modelling Under Uncertainty
Author: Mamdouh Abdelmoula Mohamed AbdelsalamPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
The Inflation-Targeting Debate
Author: Ben S. BernankePublisher: University of Chicago Press
ISBN: 0226044734
Category : Business & Economics
Languages : en
Pages : 469
Book Description
Over the past fifteen years, a significant number of industrialized and middle-income countries have adopted inflation targeting as a framework for monetary policymaking. As the name suggests, in such inflation-targeting regimes, the central bank is responsible for achieving a publicly announced target for the inflation rate. While the objective of controlling inflation enjoys wide support among both academic experts and policymakers, and while the countries that have followed this model have generally experienced good macroeconomic outcomes, many important questions about inflation targeting remain. In Inflation Targeting, a distinguished group of contributors explores the many underexamined dimensions of inflation targeting—its potential, its successes, and its limitations—from both a theoretical and an empirical standpoint, and for both developed and emerging economies. The volume opens with a discussion of the optimal formulation of inflation-targeting policy and continues with a debate about the desirability of such a model for the United States. The concluding chapters discuss the special problems of inflation targeting in emerging markets, including the Czech Republic, Poland, and Hungary.
The Performance of Forecast-based Monetary Policy Rules Under Model Uncertainty
Author: Andrew T. LevinPublisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 60
Book Description
Inflation Targeting
Author: Lars E. O. SvenssonPublisher:
ISBN:
Category : Anti-inflationary policies
Languages : en
Pages : 58
Book Description
Inflation Targeting Under Potential Output Uncertainty
Author: Victor GaiduchPublisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 44
Book Description
The concept of sustainable productive capacity is playing an increasingly important role in monetary policy formulation throughout the world. Specifying price stability as a central objective of monetary policy has contributed to this increased importance. The long lags between policy actions and inflation outcomes mean that indicators of future inflation pressures must be relied on to guide current policy actions that are aimed at achieving price stability. The extent to which an economy's productive resources are being utilized is considered to be a useful indicator of future price pressures. Whether productive resources are defined in terms of the goods market (potential output) or the labor market (trend unemployment), policymakers rely on estimates of these concepts to determine whether current levels of activity can be sustained without generating price pressures. If activity is deemed to be above a sustainable level, policymakers may suspect that upward pressure on inflation will emerge if they do not take actions to moderate activity. Conversely, if current activity is below the sustainable level this may lead policymakers to stimulate activity to avoid future downward pressure on inflation.
Learning About the Term Structure and Optimal Rules for Inflation Targeting
Author: Sylvester C. W. EijffingerPublisher:
ISBN:
Category :
Languages : en
Pages : 43
Book Description
In this paper we incorporate the term structure of interest rates in a standard inflation forecast targeting framework. We find that under flexible inflation targeting and uncertainty in the degree of persistence in the economy, allowing for active learning possibilities has effects on the optimal interest rate rule followed by the central bank. For a wide range of possible initial beliefs about the unknown parameter, the dynamically optimal rule is in general more activist, in the sense of responding aggressively to the state of the economy, than the myopic rule for small to moderate deviations of the state variable from its target. On the other hand, for large deviations, the optimal policy is less activist than the myopic and the certainty equivalence policies.
Optimal Inflation Targeting Rules
Author: Marc Paolo GiannoniPublisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 84
Book Description
This paper characterizes optimal monetary policy for a range of alternative economic models in terms of a flexible inflation targeting rule, with a target criterion that depends on the model specification. It shows which forecast horizons should matter, and which variables besides inflation should be taken into account, for each specification. The likely quantitative significance of the various factors considered in the general discussion is then assessed by estimating a small, structural model of the U.S. monetary transmission mechanism with explicit optimizing foundations. An optimal policy rule is computed for the estimated model, and shown to correspond to a multi-stage inflation-forecast targeting procedure. The degree to which actual U.S. policy over the past two decades has conformed to the optimal target criteria is then considered
Why Inflation Targeting?
Author: Charles FreedmanPublisher: International Monetary Fund
ISBN: 145187233X
Category : Business & Economics
Languages : en
Pages : 27
Book Description
This is the second chapter of a forthcoming monograph entitled "On Implementing Full-Fledged Inflation-Targeting Regimes: Saying What You Do and Doing What You Say." We begin by discussing the costs of inflation, including their role in generating boom-bust cycles. Following a general discussion of the need for a nominal anchor, we describe a specific type of monetary anchor, the inflation-targeting regime, and its two key intellectual roots-the absence of long-run trade-offs and the time-inconsistency problem. We conclude by providing a brief introduction to the way in which inflation targeting works.
Learning about the Term Structure and Optimal Rules for Inflation Targeting
Author: Mewael F. TesfaselassieThe Scope for Inflation Targeting in Developing Countries
Author: Mr.Paul R. MassonPublisher: International Monetary Fund
ISBN: 145185515X
Category : Business & Economics
Languages : en
Pages : 54
Book Description
Inflation targeting (IT) serves as monetary policy framework in several advanced economies, where it has enhanced policy transparency and accountability. The paper considers its wider applicability to developing countries. The prerequisites for a successful IT framework are identified as an ability to carry out an independent monetary policy (free of fiscal dominance or commitment to another nominal anchor, like the exchange rate) and a quantitative framework linking policy instruments to inflation. These prerequisites are largely absent among developing countries, though several of them could with some further institutional changes and an overriding commitment to low inflation make use of an IT framework.