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1 the economics of inflation targeting: negatively sloped, vertical, and backward- bending phillips curves (2006).
| Content Provider | CiteSeerX |
|---|---|
| Author | Jel Ref, E. Palley, Thomas I. |
| Abstract | This paper examines the economics of inflation targeting. It distinguishes between the technocratic case and the public policy case. The technocratic case rests on the technical merits of guiding monetary policy with inflation targets. The public policy case raises concerns that public choice incentives may bias downward the choice of numerical target. Inflation targeting is a desirable operating procedure regardless of whether the Phillips curve is negatively sloped, vertical, or backward bending. However, the shape of the Phillips curve influences the selection of the explicit target. Because of the danger of downward bias, public policy discourse should not be framed in terms of an explicit numerical inflation target. |
| File Format | |
| Publisher Date | 2006-01-01 |
| Access Restriction | Open |
| Subject Keyword | Inflation Targeting Backward Bending Phillips Curve Public Policy Case Phillips Curve Technocratic Case Explicit Target Numerical Target Inflation Target Technical Merit Downward Bias Public Choice Incentive Desirable Operating Procedure Regardless Public Policy Discourse Monetary Policy Explicit Numerical Inflation Target |
| Content Type | Text |
| Resource Type | Article |
