Fair, Ray C. - In: Economics: The Open-Access, Open-Assessment E-Journal 1 (2007) 2007-8, pp. 1-52
This paper uses a structurally estimated macroeconometric model, denoted the MC model, to evaluate inflation targeting … considered. The results show that 1) there are output costs to inflation targeting, especially for price shocks, 2) price …-level targeting is dominated by inflation targeting, 3) the estimated interest rate rule of the Fed (in Table 4) is consistent with …