Optimal trend inflation under inflation targeting

Acocella, Nicola and Di Bartolomeo, Giovanni and Tirelli, Patrizio (2009) Optimal trend inflation under inflation targeting. Working Paper. Dipartimento di Studi Geoeconomici, Linguistici, Statistici e Storici per l'Analisi regionale, Università di Roma La Sapienza, Roma, Italia, Roma. (Unpublished)


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General equilibrium models with nominal rigidities cannot find a rationale for the optimality of positive inflation targets. Our key contribution is that a long-term trade-of between inflation and output efficiency may exist in the long rum due to real money balance effects.

Item Type: Monograph (Working Paper)
Additional Information: Jel classification: E52, E58, J51; E24
Uncontrolled Keywords: trend inflation, long run Phillips curve, inflation targeting, real money balances
Subjects: 300 Scienze sociali > 330 Economia
Depositing User: Prof. Nicola Acocella
Date Deposited: 16 Jul 2009
Last Modified: 20 May 2010 12:02
URI: http://eprints.bice.rm.cnr.it/id/eprint/984

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