Employment targeting
Inflation is often given the central role in discussions of monetary policy. Is this emphasis warranted? We investigate this in a DSGE model and find: (1) One can implement the optimal interest rate policy using only employment as an instrument, (2) using inflation as an instrument would lead to lower utility.
Year of publication: |
2008
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Authors: | Bénassy, Jean-Pascal |
Published in: |
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 99.2008, 2, p. 320-323
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Publisher: |
Elsevier |
Saved in:
Online Resource
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