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Inflation Targeting

4 papers tracked 0 forthcoming 3 classics
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21 concepts covered in this topic

Anticipated non-Markov news shock Canonical representation of the small open economy Conditional versus unconditional cost of the ZLB Constrained discretion Core/underlying CPI Domestic inflation targeting (DIT) as the (special-case) optimal policy Endogenous zero lower bound (ZLB) duration Escape clause Excess smoothness of the real exchange rate/terms of trade under a peg Extended function path (EFP) method Forward guidance puzzle Increasing cost of inflation volatility (Θ_2 falling with π̄) Nominal anchor Open-mouth policy Optimal intermediate target (Svensson's argument, as used here) Price-level targeting (PLT) response Risky steady state Steady-state price dispersion (Θ_0) Terms of trade, real exchange rate, and international risk sharing The exchange-rate/terms-of-trade volatility vs. domestic-stability trade-off "Baby" ToTEM (bToTEM)
Showing 4 papers
Published Classic Review of Economic Studies Published Oct 2012
The Optimal Inflation Rate in New Keynesian Models: Should Central Banks Raise Their Inflation Targets in Light of the Zero Lower Bound?

Olivier Coibion · Yuriy Gorodnichenko · Johannes Wieland

This 2012 Review of Economic Studies paper by Olivier Coibion, Yuriy Gorodnichenko, and Johannes Wieland asks what rate of steady-state (trend) inflation maximizes welfare in a New Keynesian DSGE …

Effective Lower Bound Inflation Targeting
Online First Journal of Money, Credit and Banking Online 12 Sep 2026
The Power of Open-Mouth Policies

Vadym Lepetyuk · Lilia Maliar · Serguei Maliar · John B. Taylor

When a central bank announces a policy it will not implement for some time, households and firms respond straight away. This paper measures how much of a policy's effect arrives in that anticipation …

Central Bank Communication Monetary Policy Rules Forward Guidance Inflation Targeting Effective Lower Bound Dsge Models Methodology