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Aggregate and welfare effects of redistribution of wealth under inflation and price-level targeting

Meh, Césaire Assah (contributor); … - 2008

properties which is what we explore in this paper. For Canada, we show that the magnitude of redistributions of an unexpected 1 …

Persistent link: https://www.econbiz.de/10003773003

Price-Level Targeting : A Post-Mortem?

Ambler, Steve - 2014

Commentary reviews some of the reasons for this in the Canadian and American contexts. The relative mildness of Canada's 2008 …-2009 recession convinced the Bank of Canada that inflation-targeting can work in troubled as well as tranquil times. Meanwhile, the … banks to ignore past inflation shocks and engage in fine-tuning of the business cycle. The Bank of Canada shares the Fed …

Persistent link: https://www.econbiz.de/10013058834

The primary goal of monetary policy : reflections on the nature of the problem

Hetmańczuk, Adam - In: Central European review of economics and management : CEREM 5 (2021) 1, pp. 77-101

Aim: In this article, the state of the discourse concerning the final goal of the modern central bank is presented, in particular the aim of price stability, understood as low and stable inflation. Design/Research methods: The article was prepared on the basis of scientific publications in the...

Persistent link: https://www.econbiz.de/10013198396

Inflation targeting and price-level-path targeting in the GEM : some open economy considerations

Coletti, Donald (contributor); Lalonde, René (contributor); … - 2008

stabilize the macroeconomy, in response to a series of shocks, similar to those seen in Canada and the United States over the … 1983 to 2004 period. The analysis is conducted in a two-country (Canada and the United States), two-sector (tradables and … been most important for explaining movements in Canada’s terms of trade over this period, PLPT is still preferred to IT …

Persistent link: https://www.econbiz.de/10003711669

Would price-level targeting destabilise the economy?

Minford, Patrick; Nowell, Eric; Webb, Bruce - 2005 - Revised September 2005

When indexation is endogenous price level targeting slightly adds to economic stability, contrary to widespread fears to the contrary. The aggregate supply curve flattens and the aggregate demand curve steepens, increasing stability in the face of supply shocks.

Persistent link: https://www.econbiz.de/10011516965

Monetary and Fiscal Theories of the Price Level : The Irreconcilable Differences

McCallum, Bennett T. - 2006

The fiscal theory of the price level (FTPL) has attracted much attention but disagreement remains concerning its defining characteristics. Some writers have emphasized implications regarding interest-rate pegging and determinacy of RE solutions, whereas others have stressed its capacity to...

Persistent link: https://www.econbiz.de/10012734227

Definition of Price Stability, Range and Point Inflation Targets : The Anchoring of Long-Term Inflation Expectations

Castelnuovo, Efrem; Nicoletti-Altimari, Sergio; … - 2021

Announcing a quantitative objective for price developments has become a common practice in modern monetary policy making. While the specific features of such announced objectives vary across countries, a common rationale for this is to help anchoring inflation expectations. We use survey data on...

Persistent link: https://www.econbiz.de/10013319709

Inflation Zone Targeting

Orphanides, Athanasios; Wieland, Volker - 2021

We study optimal monetary policy design in a simple model that deviates from the linear-quadratic paradigm and provides a rationale for the practice of inflation zone targeting. We show that the presence of either zone-quadratic preferences or a zone-linear relationship between inflation and...

Persistent link: https://www.econbiz.de/10013320328

Price Stability and Monetary Policy Effectiveness When Nominal Interest Rates are Bounded at Zero

Coenen, Günter; Orphanides, Athanasios; Wieland, Volker - 2021

This paper employs stochastic simulations of a small structural rational expectations model to investigate the consequences of the zero bound on nominal interest rates. We find that if the economy is subject to stochastic shocks similar in magnitude to those experienced in the U.S. over the...

Persistent link: https://www.econbiz.de/10013321429

Alternative optimized monetary policy rules in multi-sector small open economies

De Resende, Carlos; Dib, Ali; Kichian, Maral - 2010

multiple dimensions. With key parameters of the model estimated using data from an inflation targeting economy, namely Canada …

Persistent link: https://www.econbiz.de/10003951230