350
Views
3
CrossRef citations to date
0
Altmetric
Articles

Price-Level Targeting Versus Inflation Targeting in a New Keynesian Model with Inflation Persistence

&
Pages 249-269 | Received 01 Jun 2015, Accepted 01 May 2016, Published online: 22 Jan 2019

References

  • Akerlof, George, Dickens, William and George Perry (1996). The macroeconomics of low inflation. Brookings Papers on Economic Activity 1: 1–76.
  • Ambler, Steven (2014). Price-level targeting: a post mortem.? Commentary 400. C.D Howe Institute.
  • Bank of Canada (2011). Renewal of the inflation-control target: Background information November 2011. Bank of Canada.
  • Barnes, Michelle, Gumbau-Brisa, Fabià, Lie, Denny and Giovanni Olivei (2011). Estimation of forward-looking relationships in closed form: An application to the new Keynesian Phillips curve. Working Papers 11–3. Federal Reserve Bank of Boston.
  • Benati, Luca (2008). Investigating inflation persistence across monetary regimes. Quarterly Journal of Economics, 123(3): 1005–1060.
  • Benigno, Pierpaolo and Michael Woodford (2005). Inflation stabilization and welfare: The case of a distorted steady state. Journal of the European Economic Association, 3(6): 1185–1236.
  • Bhattarai, Saroj, Lee, Jae Won and Woong Yong Park (2014). Price indexation, habit formation, and the generalized Taylor principle. Journal of Economic Dynamics and Control, 48(C): 218–225.
  • Caraballo, Ma. Ángeles and Carlos Dabús (2013). Price dispersion and optimal inflation: The Spanish case. Journal of Applied Economics 16: 49–70.
  • Christiano, Lawrence, Eichenbaum, Martin and Charles Evans (2005). Nominal rigidities and the dynamic effects of a shock to monetary policy. Journal of Political Economy, 113(1): 1–45.
  • Cogley, Timothy and Argia Sbordone (2008). Trend inflation, indexation, and inflation persistence in the new Keynesian Phillips curve. American Economic Review, 98(5): 2101–26.
  • Femia, Katherine, Friedman, Steven, and Brian Sack (2013). The effects of policy guidance on perceptions of the Fed's reaction function. Federal Reserve Bank of New York, Staff Report No. 652.
  • Fernández-Villaverde, Jesús and Juan Rubio-Ramírez (2008). How structural are structural parameters.? In National Bureau of Economic Research (NBER) Macroeconomics Annual 2007, Volume 22: 83–137.
  • Fuhrer, Jeffrey (2010). Inflation persistence. In B. M. Friedman and M. Woodford, editors, Handbook of monetary economics, Edition 1, Volume 3, Chapter 9: 423–486.
  • Gaspar, Vítor, Smets, Frank and David Vestin (2010a). Is the time for price-level path stability.? In P., Siklos, M., Bohl and M. Wohar, editors, Challenges in central banking: The current institutional environment and forces affecting monetary policy, Cambridge University Press.
  • Gaspar, Vítor, Smets, Frank and David Vestin (2010b). Inflation expectations, adaptive learning and optimal monetary policy. In B., Friedman and M. Woodford, Handbook of monetary economics, 3: 1055–1095.
  • Guerron-Quintana, Pablo (2011). The implications of inflation in an estimated new Keynesian model. Journal of Economic Dynamics and Control, 35(6): 947–962.
  • Gumbau-Brisa, Fabia and Denny Lie (2015). Comments on trend inflation, indexation, and inflation persistence in the new Keynesian Phillips curve. Working Papers 2015–13, University of Sydney.
  • Hammond, Gill (2012). State of the art of inflation targeting. Handbook No. 29, Centre for Central Banking Studies, Bank of England.
  • Hatcher, Michael and Patrick Minford (2016). Stabilisation policy, rational expectations and price-level versus inflation targeting: A survey. Journal of Economic Surveys, 30(2): 327–55.
  • Kim, Jinill and Sunghyun Henry Kim (2003). Spurious welfare reversals in international business cycle models. Journal of International Economics, 60(2): 471–500.
  • Nessén, Marianne and David Vestin (2005). Average inflation targeting. Journal of Money, Credit, and Banking, 37(5): 837–63.
  • Ragan, Christopher (2011). The roads not taken: Why the Bank of Canada stayed with inflation targeting. E-briefs 125, C.D. Howe Institute website.
  • Raskin, Matthew (2013). The effects of the Federal Reserve's date-based forward guidance. Finance and Economics Discussion Series, Divisions of Research & Statistics and Monetary Affairs, Federal Reserve Board, Washington D.C.
  • Roisland, Oistein (2006). Inflation inertia and the optimal hybrid inflation/price-level target. Journal of Money Credit and Banking, 38(8): 2247–51.
  • Schmitt-Grohe, Stephanie and Martín Uribe (2004). Solving dynamic general equilibrium models using a second-order approximation to the policy function. Journal of Economic Dynamics and Control, 28(4): 755–775.
  • Smets, Frank and Rafael Wouters (2007). Shocks and frictions in US business cycles: A Bayesian DSGE approach. American Economic Review, 97(3): 586–606.
  • Steinsson, Jón (2003). Optimal monetary policy in an economy with inflation persistence. Journal of Monetary Economics, 50(7): 1425–1456.
  • Vestin, David (2000). Price-level versus inflation targeting in a forward-looking model. Working Paper 106, Sveriges Riksbank.
  • Vestin, David (2006). Price-level versus inflation targeting. Journal of Monetary Economics, 53(7): 1361–1376.
  • Walsh, Carl (2003). Speed limit policies: The output gap and optimal monetary policy. American Economic Review, 93(1): 265–278.
  • Walsh, Carl (2011). The future of inflation targeting. Economic Record, 87: 23–36.
  • Woodford, Michael (2003). Interest and prices: Foundations of a theory of monetary policy. Princeton University Press.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.