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Inflation Targeting Under Asymmetric Preferences Author info | Abstract | Publisher info | Download info | Related research | Statistics Ruge-Murcia, F.J.
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This paper develops and estimates a game-theoretical model of inflation targeting where the central banker's preferences are asymmetric around the targeted rate.
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Paper provided by Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number
2001-04.
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Length: 48 pages
Date of creation: 2001Date of revision:
Handle: RePEc:mtl:montec:2001-04Contact details of provider: Postal: C.P. 6128, Succ. centre-ville, Montr�al (PQ) H3C 3J7 Phone: (514) 343-6557 Fax: (514) 343-5831 Email: Web page: http://www.cireq.umontreal.ca More information through EDIRC
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Keywords: INFLATION ; CENTRAL BANKS ; GAME THEORY ; Other versions of this item:
Article Paper RUGE-MURCIA, Francisco .J., 2001.
"Inflation Targeting Under Asymmetric Preferences ,"
Cahiers de recherche
2001-04, Universite de Montreal, Departement de sciences economiques.
[Downloadable!] Francisco J. Ruge-Murcia, 2001.
"Inflation Targeting Under Asymmetric Preferences ,"
Banco de España Working Papers
0106, Banco de España.
[Downloadable!] Francisco Javier Ruge-Murcia, 2001.
"Inflation Targeting Under Asymmetric Preferences ,"
IMF Working Papers
01/161, International Monetary Fund.
[Downloadable!] Find related papers by JEL classification: E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
This item is featured on the following reading lists :
Canadian Macro Study Group
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Richard Clarida & Jordi Gali & Mark Gertler, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
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Clarida, Richard & Galí, Jordi & Gertler, Mark, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
CEPR Discussion Papers
2139, C.E.P.R. Discussion Papers.
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"The Science of Monetary Policy: A New Keynesian Perspective ,"
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Other versions: Ireland, Peter N., 1999.
"Does the time-consistency problem explain the behavior of inflation in the United States? ,"
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"A Test for Conditional Symmetry in Time Series Models ,"
Boston College Working Papers in Economics
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Ben S. Bernanke & Frederic S. Mishkin, 1997.
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Other versions: Barro, Robert J & Gordon, David B, 1983.
"A Positive Theory of Monetary Policy in a Natural Rate Model ,"
Journal of Political Economy ,
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"Some International Evidence on Output-Inflation Tradeoffs ,"
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Christoffersen, Peter F. & Diebold, Francis X., 1997.
"Optimal Prediction Under Asymmetric Loss ,"
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University of California at San Diego, Economics Working Paper Series
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Other versions: Lockwood, Ben & Philippopoulos, Apostolis, 1994.
"Insider Power, Unemployment Dynamics and Multiple Inflation Equilibria ,"
Economica ,
London School of Economics and Political Science, vol. 61(241), pages 59-77, February.
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Alan S. Blinder, 1999.
"Central Banking in Theory and Practice ,"
MIT Press Books ,
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repec:cup:etheor:v:13:y:1997:i:6:p:808-17 is not listed on IDEAS
Hamilton, James D, 1983.
"Oil and the Macroeconomy since World War II ,"
Journal of Political Economy ,
University of Chicago Press, vol. 91(2), pages 228-48, April.
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Staiger, Douglas & Stock, James H & Watson, Mark W, 1997.
"The NAIRU, Unemployment and Monetary Policy ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 11(1), pages 33-49, Winter.
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Robert J. Tetlow, 2000.
"Inflation targeting and target instability ,"
Finance and Economics Discussion Series
2000-01, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions: Ruge-Murcia, Francisco J., 2004.
"The inflation bias when the central bank targets the natural rate of unemployment ,"
European Economic Review ,
Elsevier, vol. 48(1), pages 91-107, February.
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Other versions: Svensson, Lars E. O., 1999.
"Inflation targeting as a monetary policy rule ,"
Journal of Monetary Economics ,
Elsevier, vol. 43(3), pages 607-654, June.
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Other versions:
Lars E.O. Svensson, 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
NBER Working Papers
6790, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Svensson, Lars E.O., 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
Seminar Papers
646, Stockholm University, Institute for International Economic Studies.
[Downloadable!] Svensson, L.E.O., 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
Papers
646, Stockholm - International Economic Studies.
Svensson, Lars E O, 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
CEPR Discussion Papers
1998, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Gul, Faruk, 1991.
"A Theory of Disappointment Aversion ,"
Econometrica ,
Econometric Society, vol. 59(3), pages 667-86, May.
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Athanasios Orphanides & David W. Wilcox, 1996.
"The opportunistic approach to disinflation ,"
Finance and Economics Discussion Series
96-24, Board of Governors of the Federal Reserve System (U.S.).
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Other versions: Eijffinger, S.C.W. & Hoeberichts, M. & Schaling, E., 1997.
"Why money talks and wealth whispers : monetary uncertainty and mystique ,"
Discussion Paper
47, Tilburg University, Center for Economic Research.
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Eijffinger, Sylvester C W & Hoeberichts, Marco & Schaling, Eric, 2000.
"Why Money Talks and Wealth Whispers: Monetary Uncertainty and Mystique ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 32(2), pages 218-35, May.
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Federal Reserve Bank of Boston, issue Sep, pages 31-44.
Lucas, Robert Jr., 1972.
"Expectations and the neutrality of money ,"
Journal of Economic Theory ,
Elsevier, vol. 4(2), pages 103-124, April.
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Francisco J. Ruge-Murcia, 2000.
"Uncovering financial markets' beliefs about inflation targets ,"
Journal of Applied Econometrics ,
John Wiley & Sons, Ltd., vol. 15(5), pages 483-512.
[Downloadable!]
Other versions:
Ruge-Murcia, F.J., 1998.
"Uncovering Financial Markets Beliefs About Inflation Targets ,"
Cahiers de recherche
9803, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
RUGE-MURCIA, Francisco J., 1998.
"Uncovering Financial Markets Beliefs About Inflation Targets ,"
Cahiers de recherche
9803, Universite de Montreal, Departement de sciences economiques.
[Downloadable!] Beetsma, Roel M W J & Jensen, Henrik, 1998.
"Inflation Targets and Contracts with Uncertain Central Banker Preferences ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 30(3), pages 384-403, August.
Other versions: Kydland, Finn E & Prescott, Edward C, 1977.
"Rules Rather Than Discretion: The Inconsistency of Optimal Plans ,"
Journal of Political Economy ,
University of Chicago Press, vol. 85(3), pages 473-91, June.
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Torsten Persson & Guido Tabellini, .
"Political Economics and Macroeconomic Policy ,"
Working Papers
121, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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Persson, T. & Tabellini, G., 1997.
"Political Economics and Macroeconomic Policy ,"
Papers
630, Stockholm - International Economic Studies.
Persson, Torsten & Tabellini , Guido, 1997.
"Political Economics and Macroeconomic Policy ,"
Seminar Papers
630, Stockholm University, Institute for International Economic Studies.
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"Political Economics and Macroeconomic Policy ,"
NBER Working Papers
6329, National Bureau of Economic Research, Inc.
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"Political Economics and Macroeconomic Policy ,"
CEPR Discussion Papers
1759, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Persson, Torsten & Tabellini, Guido, 1999.
"Political economics and macroeconomic policy ,"
Handbook of Macroeconomics ,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 22, pages 1397-1482
Elsevier.
[Downloadable!] (restricted) Pesaran, M Hashem & Ruge-Murcia, Francisco J, 1999.
"Analysis of Exchange-Rate Target Zones Using a Limited-Dependent Rational-Expectations Model with Jumps ,"
Journal of Business & Economic Statistics ,
American Statistical Association, vol. 17(1), pages 50-66, January.
Svensson, Lars E O, 1997.
"Optimal Inflation Targets, "Conservative" Central Banks, and Linear Inflation Contracts ,"
American Economic Review ,
American Economic Association, vol. 87(1), pages 98-114, March.
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Other versions:
Svensson, L.E.O., 1995.
"Optimal Inflation Targets, 'Conservative' Central Banks, and Linear Inflation Contracts ,"
Papers
595, Stockholm - International Economic Studies.
Lars E.O. Svensson, 1997.
"Optimal Inflation Targets, `Conservative' Central Banks, and Linear Inflation Contracts ,"
NBER Working Papers
5251, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Svensson, Lars E O, 1995.
"Optimal Inflation Targets, 'Conservative' Central Banks, and Linear Inflation Contracts ,"
CEPR Discussion Papers
1249, C.E.P.R. Discussion Papers.
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"Optimal monetary policy with a nonlinear Phillips curve ,"
Economics Letters ,
Elsevier, vol. 67(2), pages 159-164, May.
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Epstein, Larry G & Zin, Stanley E, 1989.
"Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: A Theoretical Framework ,"
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White, Halbert, 1982.
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Mervyn King, 1996.
"How should central banks reduce inflation? conceptual issues ,"
Proceedings ,
Federal Reserve Bank of Kansas City, pages 53-91.
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Muscatelli, V Anton, 1999.
"Inflation Contracts and Inflation Targets under Uncertainty: Why We Might Need Conservative Central Bankers ,"
Economica ,
London School of Economics and Political Science, vol. 66(262), pages 241-54, May.
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Gerlach, Stefan, 1999.
"Who targets inflation explicitly? ,"
European Economic Review ,
Elsevier, vol. 43(7), pages 1257-1277, June.
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