Bofinger, Peter; Mayer, Eric; Wollmershäuser, Timo; … - 2003
]). Walsh [2002] has criticised that it is not suited for an analysis of inflation targeting. We present the BMW model as an … alternative framework, which develops the Romer approach into a simple macroeconomic model. It can deal with issues like inflation … targeting, monetary policy rules, and central bank credibility. Our open-economy version is a powerful alternative to the IS …