Arbeitspapier
Adopting price-level targeting under imperfect credibility in ToTEM
Using the Bank of Canada's main projection and policy-analysis model, ToTEM, this paper measures the welfare gains of switching from inflation targeting to price-level targeting under imperfect credibility. Following the policy change, private agents assign a probability to the event that the policy-maker will revert to inflation-targeting next period. As this probability decreases and imperfect credibility abates, inflation expectations in the economy become consistent with price-level targeting. The paper finds a large welfare gain when imperfect credibility is short-lived. The gain becomes smaller with persisting imperfect credibility, turning to a loss if it lasts more than 13 years.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Canada Working Paper ; No. 2009-17
- Klassifikation
-
Wirtschaft
Price Level; Inflation; Deflation
Monetary Policy
- Thema
-
Monetary policy framework
Monetary policy implementation
Geldpolitik
Inflation Targeting
Preisniveaustabilität
Unvollkommene Information
Wohlfahrtseffekt
Kanada
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Cateau, Gino
Kryvtsov, Oleksiy
Shukayev, Malik
Ueberfeldt, Alexander
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Canada
- (wo)
-
Ottawa
- (wann)
-
2009
- DOI
-
doi:10.34989/swp-2009-17
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 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
- Cateau, Gino
- Kryvtsov, Oleksiy
- Shukayev, Malik
- Ueberfeldt, Alexander
- Bank of Canada
Entstanden
- 2009
Ähnliche Objekte (12)
Adopting price-level targeting under imperfect credibility
Adopting price-level targeting under imperfect credibility: An update
Firm-level investment under imperfect capital markets in Ukraine
Imperfect banking competition and macroeconomic volatility: A DSGE framework
Inflation targeting and liquidity traps under endogenous credibility
Inventories in ToTEM
Inventories, stockouts, and ToTEM
Limited commitment, endogenous credibility and the challenges of price-level targeting
The central bank strikes back! Credibility of monetary policy under fiscal influence
Credibility, flexibility and renewal: The evolution of inflation targeting in Canada
Exchange rate regimes, globalisation, and the cost of capital in emerging markets
Jump-diffusion long-run risks models, variance risk premium and volatility dynamics
Adopting price-level targeting under imperfect credibility
Adopting price-level targeting under imperfect credibility: An update
Firm-level investment under imperfect capital markets in Ukraine
Imperfect banking competition and macroeconomic volatility: A DSGE framework
Inflation targeting and liquidity traps under endogenous credibility
Inventories in ToTEM
Inventories, stockouts, and ToTEM
Limited commitment, endogenous credibility and the challenges of price-level targeting
The central bank strikes back! Credibility of monetary policy under fiscal influence
Credibility, flexibility and renewal: The evolution of inflation targeting in Canada
Exchange rate regimes, globalisation, and the cost of capital in emerging markets
Jump-diffusion long-run risks models, variance risk premium and volatility dynamics
Adopting price-level targeting under imperfect credibility
Adopting price-level targeting under imperfect credibility: An update
Firm-level investment under imperfect capital markets in Ukraine
Imperfect banking competition and macroeconomic volatility: A DSGE framework
Inflation targeting and liquidity traps under endogenous credibility
Inventories in ToTEM
Inventories, stockouts, and ToTEM
Limited commitment, endogenous credibility and the challenges of price-level targeting
The central bank strikes back! Credibility of monetary policy under fiscal influence
Credibility, flexibility and renewal: The evolution of inflation targeting in Canada
Exchange rate regimes, globalisation, and the cost of capital in emerging markets