Arbeitspapier
Multiple Objectives and Central Bank Tradeoffs under Flexible Inflation Targeting
Many inflation targeting central banks are facing calls to expand their list of policy goals. I discuss how recent research provides new insights into the goals of policy and the tradeoffs presented by multiple goals. I focus particular attention on the role of unemployment and labor market frictions, but I also discuss the role of currency misalignment in affecting policy objectives in open economies. Current models often find that price stability is close to the optimal policy, even when, in theory, the central bank should care about multiple goals. I offer some ideas about why this might be the case.
- Language
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Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 5097
- Classification
-
Wirtschaft
- Subject
-
inflation targeting
monetary policy tradeoffs
central banks
- Event
-
Geistige Schöpfung
- (who)
-
Walsh, Carl
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:43 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
- Walsh, Carl
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2014
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