Metas de Inflação, Crescimento e Estabilidade Macroeconômica Uma análise a partir de um modelo póskeynesianomacrodinâmico não-linear
AbstractThe aim of this paper is to analyze the effects of adopting an inflation targeting regime, in which central banks set the short-term interest rate as a response to deviations of inflation from its target and of output from its potential, over economic growth. To this end, we build a non-linear post-keynesian growth model which allows the existence of more than one short-term equilibrium point. We conclude that maintaining a balanced short-term growth path after exogenous shocks depends largely on fiscal policy. Besides that, there are three possible long-term equilibrium configurations, two of which are inherently unstable. Long-term equilibrium stability of the third configuration depends on how central banks respond to deviations on inflation and output. More precisely, we show that a more cautious behavior from the Central Bank in a manner that it only increases short term interest rates when it is really required to do so could help the economy to have a balanced growth-path in the longrun.
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Bibliographic InfoPaper provided by Departamento de Economia da Universidade de Brasilia in its series Working papers - Textos para Discussao do Departamento de Economia da Universidade de Brasilia with number 360.
Length: 26 pages
Date of creation: Apr 2011
Date of revision:
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More information through EDIRC
inflation targeting; economic growth; dynamics; post-keynesian economics;
Find related papers by JEL classification:
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-25 (All new papers)
- NEP-CBA-2011-06-25 (Central Banking)
- NEP-MAC-2011-06-25 (Macroeconomics)
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