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Optimal Horizons for Inflation Targeting Author info | Abstract | Publisher info | Download info | Related research | Statistics Batini, Nicoletta () (Research Advisor, Monetary Policy Committee)
Nelson, Edward () (Monetary Assessment and Strategy Division)
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In this paper we investigate the problem of selecting an optimal horizon for inflation targeting in the United Kingdom. Since there are two key ways of thinking about an optimal horizon, we look at optimal horizons for both of these interpretations. In addition, to see whether our results are robust in the face of model uncertainty, we compute optimal horizons for two different models with divergent structural and dynamic characteristics.
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Paper provided by Sveriges Riksbank (Central Bank of Sweden) in its series Working Paper Series with number
103.
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Length: 42 pages
Date of creation: 01 Feb 2000Date of revision:
Publication status: Published in Journal of Economic Dynamics and Control, 2001, pages 891-910.Handle: RePEc:hhs:rbnkwp:0103Contact details of provider: Postal: Sveriges Riksbank, SE-103 37 Stockholm, Sweden Phone: 08 - 787 00 00 Fax: 08-21 05 31 Email: Web page: http://www.riksbank.com/ More information through EDIRC
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Keywords: Inflation targeting Horizon Optimal policy rules Simple feedback rules Target Other versions of this item:
Find related papers by JEL classification: E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
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