This paper shows how using inflation targeting to set monetary policy can facilitate a non-inflationary expansion, that is a permanent increase in aggregate activity without causing an increase in the rate of inflation.
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Paper provided by Tasmania - Department of Economics in its series Papers with number
2001-11.
Find related papers by JEL classification: E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General