Arbeitspapier
Inflation targeting, the natural rate and expectations
In the new Keynesian model of endogenous stabilization governments have objectives with respect to macroeconomic performance, but are constrained by an augmented Phillips curve. Because they react quickly to inflation shocks, governments can lean against the macroeconomic wind. We develop an econometric test of this characterization of the political-economic equilibrium using the Kalman filter. Applying this methodology to a variety of quadratic social welfare functions, we find that an inflation target functional form is consistent with US history. We also find it more likely that expectations of inflation are adaptive, rather than rational.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 2008-03
- Klassifikation
-
Wirtschaft
Policy Objectives; Policy Designs and Consistency; Policy Coordination
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
- Thema
-
endogenous stabilization
policy objectives
adaptive expectations
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kiefer, David
- Ereignis
-
Veröffentlichung
- (wer)
-
The University of Utah, Department of Economics
- (wo)
-
Salt Lake City, UT
- (wann)
-
2008
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kiefer, David
- The University of Utah, Department of Economics
Entstanden
- 2008
Ähnliche Objekte (12)
Targeting Inflation from Below - How Do Inflation Expectations Behave?
Inflation Targeting and Inflation Expectations: Evidence for Brazil and Turkey
Price-level targeting and inflation expectations: Experimental evidence
Does inflation targeting reduce the dispersion of price setters' inflation expectations?
Does inflation targeting reduce the dispersion of price setters' inflation expectations?
Rational expectations and inflation targeting: An analysis for ten countries
Inflation targeting
Inflation Targeting versus Monetary Targeting
Updating inflation expectations
Updating inflation expectations
Anchored inflation expectations
Stabilization policy, rational expectations and price-level versus inflation targeting: a survey
Targeting Inflation from Below - How Do Inflation Expectations Behave?
Inflation Targeting and Inflation Expectations: Evidence for Brazil and Turkey
Price-level targeting and inflation expectations: Experimental evidence
Does inflation targeting reduce the dispersion of price setters' inflation expectations?
Does inflation targeting reduce the dispersion of price setters' inflation expectations?
Rational expectations and inflation targeting: An analysis for ten countries
Inflation targeting
Inflation Targeting versus Monetary Targeting
Updating inflation expectations
Updating inflation expectations
Anchored inflation expectations
Stabilization policy, rational expectations and price-level versus inflation targeting: a survey
Targeting Inflation from Below - How Do Inflation Expectations Behave?
Inflation Targeting and Inflation Expectations: Evidence for Brazil and Turkey
Price-level targeting and inflation expectations: Experimental evidence
Does inflation targeting reduce the dispersion of price setters' inflation expectations?
Does inflation targeting reduce the dispersion of price setters' inflation expectations?
Rational expectations and inflation targeting: An analysis for ten countries
Inflation targeting
Inflation Targeting versus Monetary Targeting
Updating inflation expectations
Updating inflation expectations
Anchored inflation expectations