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3 edition of Inflation targeting, price-path targeting and output variability found in the catalog.

Inflation targeting, price-path targeting and output variability

Stephen G. Cecchetti

Inflation targeting, price-path targeting and output variability

by Stephen G. Cecchetti

  • 381 Want to read
  • 32 Currently reading

Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

    Subjects:
  • Inflation (Finance),
  • Money supply

  • Edition Notes

    StatementStephen G. Cecchetti, Junhan Kim.
    SeriesNBER working paper series -- no. 9672., Working paper series (National Bureau of Economic Research) -- working paper no. 9672.
    ContributionsKim, Junhan., National Bureau of Economic Research.
    The Physical Object
    Pagination33 p. :
    Number of Pages33
    ID Numbers
    Open LibraryOL17613160M
    OCLC/WorldCa52378128

    Uncertainty about the future price path lowers the information content of prices, therefore making long term contracting difficult. This could lead to lower investment and long run growth (Cukierman et al., ). Grier and Perry () and Grier et al. () provide empirical evidence that inflation uncertainty decreases output by: 3. Equivalently, the inflation rate would fluctuate more in the short run under price-level-targeting, as policy strives to come back to the chosen price path. For instance, under price-level-targeting, the Bundesbank, at the end of , would be required to reduce inflation below its 2percent target range for as far and as long as it takes to.

    Does Inflation Targeting Matter? National Bureau of Economic Research, Inc, NBER Working Papers Inflation Targeting, Price-Path Targeting, and Output Variability. In: The inflation-targeting debate, pp. , Estimating the Euler Equation for Output. Journal of Monetary Economics. Abstract: Inflation targeting (IT)--a policy framework that directly targets an explicit inflation goal--has gained widespread attention recently as it has been adopted by several OECD countries. There is a growing body of literature on the ultimate long-term benefits of price stability and on theoretical issues related to inflation targeting.

      But by early , however, in light of the much-reduced degree of output variability, Friedman had reached the view that stabilization policy had been executed successfully by the Federal Reserve in recent years and was a major reason for high M2 growth variability relative to output variability since (see Taylor, ). ADVANCED MACROECONOMICS Fourth Edition David Romer University of California, Berkeley iii Romer rom˙fm˙i-xx Febru iv ADVANCED MACROECONOMICS, FOURTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., c by Avenue of the Americas, New York, NY,


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Inflation targeting, price-path targeting and output variability by Stephen G. Cecchetti Download PDF EPUB FB2

Inflation Targeting, Price-Path Targeting, and Output Variability Stephen G. Cecchetti, Kim. Chapter in NBER book The Inflation-Targeting Debate (), Ben S. Bernanke and Michael Woodford, editors (p. - ) Conference held JanuaryPublished in Cited by: By con trast, under price-path targeting, the curren t target is an incremen t o v er the past p erio d’s tar get.

Hybrid targeting is a weigh ted a v erage of inflation and price-path targeting. Downloadable. The dramatic improvement in macroeconomic outcomes during the s - stable, low inflation and high, stable growth - can be at least partly ascribed to improved monetary policy.

Central banks became more independent and many of them adopted inflation targeting. This paper examines the potential for further improvements by refining the concept of inflation targeting. The issue turns on the persistence of output variability from their trend. With high persistence, the theoretical results suggest that countries are best off if they adopt a hybrid target that is close to price-path targeting.

The chapter considers the welfare loss from adopting pure inflation or price-path targeting rather than the optimal : Stephen G. Cecchetti. Get this from a library. Inflation targeting, price-path targeting and output variability.

[Stephen G Cecchetti; Junhan Kim; National Bureau of Economic Inflation targeting -- Abstract: The dramatic improvement in macroeconomic outcomes during the s - stable, low inflation and high, stable growth - can be at least partly ascribed to improved monetary policy.

Get this from a library. Inflation targeting, price-path targeting and output variability. [Stephen G Cecchetti; Junhan Kim; National Bureau of Economic Research.]. Optimal Inflation-Targeting Rules Marc P. Giannoni and Michael Woodford Comment: Edward Nelson Discussion Summary 4.

Inflation Targeting, Price-Path Targeting, and Output Variability Stephen G. Cecchetti and Junhan Kim Comment: N. Gregory Mankiw Discussion Summary 5. Imperfect Knowledge, Inflation Expectations, and Monetary Policy. Downloadable. In this article, the authors describe a popular monetary policy framework based on a neoclassical Phillips Curve model.

Here, the choice between an inflation target and a price-level target depends on characteristics of real output. If the output gap is relatively persistent, then targeting the price level results in a better set of policy options for the central bank.

Inflation Targeting, Price-Path Targeting, and Output Variability: Stephen G. Cecchetti, Kim (p. - ) (bibliographic info) (Working Paper version) 6. Imperfect Knowledge, Inflation Expectations, and Monetary Policy: Athanasios Orphanides, John Williams (p. - ) (bibliographic info) ( Cited by: Inflation targeting dominates price-level targeting in riding out temporary inflation shocks and in avoiding costly contractionary policy offsets and excessive inflation variability (Fischer, ).

Inflation Targeting, Price-Path Targeting, and Output Variability Stephen G. Cecchetti and Junhan Kim Comment: N. Gregory Mankiw Discussion Summary 5.

Imperfect Knowledge, Inflation Expectations, and Monetary Policy Athanasios Orphanides and John C. Williams Comment: George W. Evans Discussion Summary. Critical Perspectives : $ 3 Optimal Inflation-Targeting Rules; 4 Inflation Targeting, Price-Path Targeting, and Output Variability; 5 Imperfect Knowledge, Inflation Expectations, and Monetary Policy; 6 Does Inflation Targeting Matter.

7 Limits to Inflation Targeting; 8 Inflation Targeting in the United States. 9 Author: Marvin Goodfriend. Ben S. Bernanke is the Howard Harrison and Gabrielle Snyder Beck Professor of Economics and Public Affairs at Princeton University.

He is a member of the board of governors of the United States Federal Reserve System, coauthor of two economics textbooks and of Inflation Targeting: Lessons from the International l Woodford is the Harold H.

Helm ’20 Professor of Economics and Cited by: Inflation-forecast targeting is state of the art for monetary policy. This book explores first principles, including managing short-term policy trade-offs. The book also outlines efficient operational procedures and reviews the experiences of Canada, the Czech Republic, and India.

The analysis highlights the need for assertive policies and maximum transparency. In a wide variety of economic models, a price-path target mitigates the zero lower bound problem, eliminates worries about deflation, and improves the central bank’s ability to stabilize the real economy.

KEYWORDS: Price path targeting; inflation targeting. Inflation Targeting, Price-Path Targeting, and Output Variability, pp Stephen Cecchetti and Junhan Kim Imperfect Knowledge, Inflation Expectations, and Monetary Policy, pp Athanasios Orphanides and John Williams Does Inflation Targeting Matter?, pp Laurence Ball and Niamh Sheridan Limits to Inflation Targeting, pp Cited by: “The Inflation-Output Variability Tradeoff and Price Level Targets,” Federal Reserve Bank of St.

Louis Review 81(1) (January/February ),with Robert D. Dittmar and Finn E. Kydland. “The FOMC in A Step Closer to Inflation Targeting?” Federal Reserve Bank of St. Louis Review, September/OctoberThe volume opens with a discussion of the optimal formulation of inflation-targeting policy and continues with a debate about the desirability of such a model for the United States.

The concluding chapters discuss the special problems of inflation targeting in emerging markets, including the Czech Republic, Poland, and Hungary. Inflation targeting, price-path targeting and output variability by Stephen G.

Cecchetti 1 edition - first published in Not in Library. optimal inflation-targeting rules (Marc P. Giannoni and Michael Woodford); inflation targeting, price-path targeting, and output variability (Stephen G.

Cecchetti and Junhan Kim); imperfect knowledge, inflation expectations, and monetary policy (Athana-sios Orphanides and John C. Williams); whether in-flation targeting matters (Laurence Ball.

Inat a distinguished National Bureau of Economic Research (NBER) conference on monetary policy rules (Taylor, ), Rudebusch and Svensson () was the only paper to use targeting rules; inat an equally distinguished NBER conference on inflation targeting (Bernanke and Woodford, ), several papers used targeting rules and no.Consider first inflation or price-level path targeting.

With a negative supply shock, output tends to fall owing to supply disruptions, causing prices to rise. In response, in an inflation rate targeting regime, a restrictive policy is pursued to lower the inflation rate to the target.Policy Papers and Book Chapters " Closing remarks: property markets and financial stability, issues and interpretations," in A Heath, F Packer and C Windsor, eds, Property Markets and Financial Stability, proceedings the joint RBA-BIS conference, Augustp