Speed limit policies versus inflation targeting: A free lunch?

Arbeitspapier

Inflation targeting is currently popular with central banks. Is this popularity justified? I investigate this question by comparing a speed limit policy and inflation targeting with a Lucas-type Phillips curve capturing output gap persistence. If the output gap is at least moderately persistent, a speed limit policy can: (1) partly eliminate the statecontingent inflation bias, and (2) reduce inflation variability at no output gap variability cost.

Objekt anzeigen

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Cardiff Economics Working Papers ; No. E2008/20

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; Monetary Policy ; Central Banks and Their Policies
• Thema: inflation targeting ; speed limit policy ; inflation bias ; discretion ; stabilisation ; Geldpolitik ; Inflation Targeting ; Neue klassische Makroökonomik

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hatcher, Michael C.
• Ereignis: Veröffentlichung
• (wer): Cardiff University, Cardiff Business School
• (wo): Cardiff
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/65805