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Leaning Against the Wind : The Role of Different Assumptions About the Costs
Svensson, Lars E. O. - 2017
of a weaker economy with higher unemployment and lower inflation and possible benefits from a lower probability or … magnitude of a (financial) crisis. A first obvious cost is a weaker economy if no crisis occurs. A second cost—less obvious, but … higher—is a weaker economy if a crisis occurs. Taking the second cost into account, Svensson (2017) shows that for …
Persistent link: https://www.econbiz.de/10012948449
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Inflation Forecast Targeting : Implementing and Monitoring Inflation Targets
Svensson, Lars E. O. - 2011
Inflation targeting is shown to imply inflation forecast targeting: the central bank's inflation forecast becomes an explicit intermediate target. Inflation forecast targeting simplifies both implementation and monitoring of monetary policy. The weight on output stabilization determines how...
Persistent link: https://www.econbiz.de/10013125561
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Transparency and Credibility : Monetary Policy with Unobservable Goals
Faust, Jon - 2010
We define and study transparency, credibility, and reputation in a model where the central bank's characteristics are unobservable to the private sector and are inferred from the policy outcome. A low-credibility bank optimally conducts a more inflationary policy than a high-credibility bank, in...
Persistent link: https://www.econbiz.de/10013137302
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Optimal Inflation Targets, `Conservative' Central Banks, and Linear Inflation Contracts
Svensson, Lars E. O. - 2021
Inflation target regimes (like those of New Zealand, Canada, U.K., Sweden and Finland) are interpreted as having explicit inflation targets and implicit output/unemployment targets. Without output-unemployment persistence delegation of monetary policy to a discretionary instrument-independent...
Persistent link: https://www.econbiz.de/10013229046
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Inflation Targeting : Some Extensions
Svensson, Lars E. O. - 2021
Previous analysis of the implementation of inflation targeting is extended to monetary policy responses to different shocks, consequences of model uncertainty, effects of interest rate smoothing and stabilization, a comparison with nominal GDP targeting, and implications of forward-looking...
Persistent link: https://www.econbiz.de/10013232903
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Monetary Policy Issues for the Eurosystem
Svensson, Lars E. O. - 2021
The paper discusses the choice between inflation targeting and monetary targeting as a strategy for the Eurosystem, the actual strategy the Eurosystem announced in the fall of 1998, the framework for policy decisions appropriate for achieving the goals of the Eurosystem, the role of exchange...
Persistent link: https://www.econbiz.de/10013247637
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Price Level Targeting vs. Inflation Targeting : A Free Lunch?
Svensson, Lars E. O. - 2021
Price level targeting (without base drift) and inflation targeting (with base drift) are compared under commitment and discretion, with persistence in unemployment. Price level targeting is often said to imply more short-run inflation variability and thereby more employment variability than...
Persistent link: https://www.econbiz.de/10013215703
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Optimal Policy with Partial Information in a Forward-Looking Model : Certainty-Equivalence Redux
Svensson, Lars E. O.; Woodford, Michael - 2021
about the state of the economy in a model with forward-looking variables. This result is used in our previous paper … state of the economy in the context of a fairly general forward-looking rational-expectations model. In particular, our …
Persistent link: https://www.econbiz.de/10013234360
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Indicator Variables for Optimal Policy
Svensson, Lars E. O.; Woodford, Michael - 2021
The optimal weights on indicators in models with partial information about the state of the economy and forward …
Persistent link: https://www.econbiz.de/10013237003
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Inflation Targeting
Svensson, Lars E. O. - 2011
stabilizing both inflation and the real economy, and has, as of 2010, been adopted by about 25 industrialized and emerging …
Persistent link: https://www.econbiz.de/10013131986