Arbeitspapier
Price level targeting
Various papers have suggested that Price-Level targeting is a welfare improving policy relative to Inflation targeting. From a practical standpoint, this raises an important yet unanswered question: What is the optimal price index to target? This paper derives the optimal price level targeting index defined over the eight main components of the Consumer Price Index. It finds that such an index places a heavier weight, relative to the expenditure weight, on sectors with slow price adjustments. However, using the expenditure weights instead of the optimal ones results in very small welfare cost.
- Language
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Englisch
- Bibliographic citation
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Series: Bank of Canada Working Paper ; No. 2010-8
- Classification
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Wirtschaft
Business Fluctuations; Cycles
Monetary Policy
- Subject
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Monetary policy framework
Geldpolitik
Inflation Targeting
Lebenshaltungsindex
Preisniveau
Statistische Methode
Wohlfahrtseffekt
- Event
-
Geistige Schöpfung
- (who)
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Shukayev, Malik
Ueberfeldt, Alexander
- Event
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Veröffentlichung
- (who)
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Bank of Canada
- (where)
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Ottawa
- (when)
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2010
- DOI
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doi:10.34989/swp-2010-8
- Handle
- Last update
-
10.03.2025, 11:44 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
- Shukayev, Malik
- Ueberfeldt, Alexander
- Bank of Canada
Time of origin
- 2010
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