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In ation Targeting and Q Volatility in Small Open Economies
| Content Provider | Semantic Scholar |
|---|---|
| Author | Lim, Guay McNelis, Paul |
| Copyright Year | 2004 |
| Abstract | This paper examines the welfare implications of managing Q with ination targeting by monetary authorities who have to "learn" the laws of motion for both ination and the rate of growth of Q. Our results show that the Central Bank can achieve great success in reducing the volatility of GDP growth with basically the same ination volatility, if it incorporates this additional target into its policy regime. However, the welfare e¤ects are generally lower, in terms of consumption, when the monetary authorithy reacts to Q growth as well as ination. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://repec.org/esFEAM04/up.13379.1077939969.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
