Price-level versus inflation targeting in a small open economy
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Price-level versus inflation targeting in a small open economy

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Published by Bank of Canada in [Ottawa] .
Written in English


Book details:

Edition Notes

Statementby Gabriel Srour.
SeriesBank of Canada working paper -- 2001-24, Working paper (Bank of Canada) -- 2001-24.
ContributionsBank of Canada.
The Physical Object
Paginationv, 20 p. ;
Number of Pages20
ID Numbers
Open LibraryOL20226557M

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Get this from a library! Price-level versus inflation targeting in a small open economy. [Gabriel Srour; Bank of Canada.]. Since inflation and output are targeted simultaneously, none of the two policies is strictly dominant. Contents. Monetary Policy in Switzerland; Comparison of Inflation and Price-Level Targeting; Bayesian Estimation of a Small Open DSGE Model Target Groups. Researchers and students in the field of economy with an interest in monetary policy The. Lukas Heim evaluates the performance of a price-level targeting rule compared to that of a standard inflation targeting rule. The comparison is based on a medium-scale DSGE model which has been estimated based on state-of-the-art Bayesian methods. The model for the Swiss economy is an expanded. Price level targeting is often said to imply more short-run inflation variability and thereby more employment variability than inflation targeting. Counter to this conventional wisdom, under discretion a price level target results in lower inflation variability than an inflation target (if unemployment is at least moderately persistent).

Price-Level Versus Inflation Targeting. the delegation issue in an open economy. Article. the desirability of price-level path targeting in a small open economy with credit frictions à la. Downloadable! How important are the benefits of low price-level uncertainty? This paper explores the desirability of price-level path targeting in an estimated DSGE model fit to Canadian data. The policy implications are based on social welfare evaluations. Compared to the historical inflation targeting rule, an optimal price level targeting regime substantially reduces the welfare cost of. Get this from a library! The welfare implications of inflation versus price-level targeting in a two-sector, small open economy. [Eva Ortega; Bank of Canada.] -- The authors analyze the welfare implications of simple monetary policy rules in the context of an estimated model of a small open economy for Canada with traded and non-traded goods, and with sticky. inflation versus price level targeting bayesian estimation of a small open dsge model for switzerland bestmasters Dec 11, Posted By Roger Hargreaves Publishing TEXT ID a Online PDF Ebook Epub Library independence of the central bank should be strengthened and an explicit inflation targeting regime should be adopted to make inflation under control table 1 reports.

welfare gain of a price-level-targeting monetary policy reaction function— has been explored in the context of a multisector, small open economy NOEM model.2 The model economy aims at representing the main features needed for conducting monetary policy analysis in a tractable characterization of the Canadian economy. In contrast, price-targeting creates a different dynamic for inflation expectations when an economy is hit by a negative demand shock.A credible price-level target of 2% inflation would create the. The welfare implications of inflation versus price-level targeting in a two-sector, small open economy / by Eva Ortega and Nooman Rebei. HG O78 The Performance and robustness of simple monetary policy rules in models of the Canadian economy / Denise Côté. Finally, forward-looking expectations are crucial for exchange rate determination and may be important for aggregate supply and aggregate demand. 7 Thus, these seem to be the minimum building blocks that must be incorporated in order to discuss inflation targeting in an open economy. A simple model of a small open economyCited by: