Arbeitspapier
Open-Economy Inflation Forecast Targeting
The paper shows that the procedure of inflation forecast targeting arguably implemented by Sveriges Riksbank and the Bank of England may lead to high nominal and real variability; the latter being manifested most notably in the traded sector. A long inflation forecast targeting horizon results in extensive smoothing of interest rate movements. This implies only weak nominal interest rate responses to disequilibrium conditions, causing the real interest rate and hence the real exchange rate to fluctuate persistently. The paper offers an explanation for the recent large variability of Swedish inflation and UK manufacturing sector output.
- ISBN
-
82-7553-158-6
- Language
-
Englisch
- Bibliographic citation
-
Series: Arbeidsnotat ; No. 2000/2
- Classification
-
Wirtschaft
Monetary Policy
Money and Interest Rates: Forecasting and Simulation: Models and Applications
Interest Rates: Determination, Term Structure, and Effects
- Subject
-
inflation targeting
forecast targeting
monetary policy
small open economy
- Event
-
Geistige Schöpfung
- (who)
-
Leitemo, Kai
- Event
-
Veröffentlichung
- (who)
-
Norges Bank
- (where)
-
Oslo
- (when)
-
2000
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Leitemo, Kai
- Norges Bank
Time of origin
- 2000
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Model Specification and Inflation Forecast Uncertainty
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