Search Results - subject:"Price Level Targeting"

Pareto Efficiency vs. the Ad Hoc Standard Monetary Objective An Analysis of Inflation Targeting

Eagle, David - EconWPA - 2005

uses the Pareto criterion to assess inflation targeting (IT), price-level targeting (PLT), and nominal-income targeting …

Persistent link: https://www.econbiz.de/10005412838

Completing Markets in a One-Good, Pure Exchange Economy Without State-Contingent Securities

Eagle, David - EconWPA - 2005

Pareto-efficient consumption in a pure-exchange, one good economy varies over states of nature with respect to only two factors: real aggregate supply and individual utility shocks. One’s optimal contract receipts vary with respect to only these two factors and the ratio of one’s endowment...

Persistent link: https://www.econbiz.de/10005561612

The Inflation Dynamics of Pegging Interest Rates

Eagle, David - EconWPA - 2005

A relatively simple analysis of central banks pegging interest rates applies whenever prices are determined in a price-flexible model where the central bank pursues a singular price-level or nominal-income target. Applying the model empirically in the U.S. and find that prior to 1980, the...

Persistent link: https://www.econbiz.de/10005126272

Could Japan Target the Price Level or Inflation - What Happens to Monetary Policy Effectiveness during Disinflation?

MEHROTRA, Aaron - Department of Economics, European University Institute - 2004

The aim of this paper is to study whether price level or inflation targeting would be appropriate monetary policy regimes for Japan. A necessary condition for such regimes is that the rate of interest remain a positive tool of monetary policy. Using VAR and SVAR approaches, we investigate...

Persistent link: https://www.econbiz.de/10005744299

Optimal Monetary Policy with Endogenous Contracts: Should we Return to a Commodity Standard?

Minford, Patrick; Nowell, Eric - C.E.P.R. Discussion Papers - 2000

A representative agent who is employed chooses an optimal degree of wage indexation (to prices and the auction wage) in response to the monetary regime. Should that regime target the growth rate or the level of the money supply, or of prices (as in a commodity standard)? We find that, contrary...

Persistent link: https://www.econbiz.de/10005497896

Macroeconomic Stabilization: Fixed Exchange Rates Vs Inflation Targeting Vs Price Level Targeting

Dehejia, Vivek; Rowe, Nicholas - C.E.P.R. Discussion Papers - 2000

exchange rates vs. inflation targeting vs. price level targeting?'. We then build a simple macroeconomic model of a small open … targeting and price level targeting are always imperfect. We use this model to compare the stabilization properties of three … level targeting is best for stabilizing output, the real exchange rate and the real interest rate, relative to their natural …

Persistent link: https://www.econbiz.de/10005124168

How Should Monetary Policy Be Conducted In An Era Of Price Stability?

Svensson, Lars E O - C.E.P.R. Discussion Papers - 1999

The paper discusses several issues related to how monetary policy should be conducted in an era of price stability. Low inflation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable loss function (corresponding to flexible...

Persistent link: https://www.econbiz.de/10005504393