Calvo-type rules and the forward-looking behavior of inflation targeting central banks

We estimate small open economy models in which inflation targeting central banks respond to a discounted infinite sum of expected inflation and output gaps (Calvo-type rules). The results support Calvo-type rules for Australia and Canada, and suggest longer targeting horizons for inflation compared with output gaps.

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Year of publication:	2013-08-13
Authors:	Araújo, Eurilton ; Gouveia, Débora
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 33.2013, 3, p. 2042-2051
Publisher:	AccessEcon
Subject:	Calvo-type rules \| Bayesian estimation \| inflation targeting

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Extent:	application/pdf
Type of publication:	Article
Classification:	E5 - Monetary Policy, Central Banking and the Supply of Money and Credit ; C0 - Mathematical and Quantitative Methods. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010836026