Arbeitspapier

Comparing inflation and price level targeting: the role of forward guidance and transparency

We examine global dynamics under learning in New Keynesian models with price level targeting that is subject to the zero lower bound. The role of forward guidance is analyzed under transparency about the policy rule. Properties of transparent and non-transparent regimes are compared to each other and to the corresponding cases of inflation targeting. Robustness properties for different regimes are examined in terms of the domain of attraction of the targeted steady state and volatility of inflation, output and interest rate. We analyze the effect of higher inflation targets and large expectational shocks for the performance of these policy regimes.

ISBN
978-952-323-040-8
Sprache
Englisch

Erschienen in
Series: Bank of Finland Research Discussion Papers ; No. 9/2015

Klassifikation
Wirtschaft
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
Monetary Policy
Central Banks and Their Policies

Ereignis
Geistige Schöpfung
(wer)
Honkapohja, Seppo
Mitra, Kaushik
Ereignis
Veröffentlichung
(wer)
Bank of Finland
(wo)
Helsinki
(wann)
2015

Handle
Letzte Aktualisierung
20.06.2025, 15:01 MESZ

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.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Honkapohja, Seppo
  • Mitra, Kaushik
  • Bank of Finland

Entstanden

  • 2015

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