Choi, Woon Gyu (contributor); Wen, Yi (contributor) - 2005
, 1999). Also, inflation targeting would alter the dynamics of interest rates:
e.g., Fuhrer and Moore (1992) suggest that … aggressive inflation targeting raises the variability of
interest rates relative to that of inflation. Hence, we expect the Fed … rates.
2
expected inflation. By linking up with consumption side and production side of the economy, we
explain the …