IDEAS home Printed from https://ideas.repec.org/a/bla/scandj/v103y2001i1p119-126.html
   My bibliography  Save this article

When Does an Inflation Target Yield the Second Best?

Author

Listed:
  • Roel Beetsma
  • Lans Bovenberg

Abstract

It is shown that an inflation target does not establish the second best if the central bank is independent and the government collects seigniorage revenues. To eliminate excessive inflation and ensure that stabilization is efficient, society should combine an optimal inflation target with a central bank that attaches less weight to inflation stabilization than the public does.

Suggested Citation

  • Roel Beetsma & Lans Bovenberg, 2001. "When Does an Inflation Target Yield the Second Best?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(1), pages 119-126, March.
    • Handle: RePEc:bla:scandj:v:103:y:2001:i:1:p:119-126
    DOI: 10.1111/1467-9442.00233
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9442.00233
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9442.00233?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francisco Candel-Sánchez & Juan Cristóbal Campoy-Miñarroy, 2004. "Is the Walsh Contract Really Optimal?," Public Choice, Springer, vol. 120(1_2), pages 29-39, July.
    2. Uchida, Hirofumi & Fujiki, Hiroshi, 2005. "Optimal inflation target under uncertainty," Japan and the World Economy, Elsevier, vol. 17(4), pages 470-479, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:scandj:v:103:y:2001:i:1:p:119-126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.