Araújo, Eurilton; Gouveia, Débora - In: Economics Bulletin 33 (2013) 3, pp. 2042-2051
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...