Inflation and Its Variation: An Alternative Explanation
AbstractThis paper introduces a general objective function for monetary policy that abandons certainty equivalence and features 'prudence'. It provides an alternative explanation for the positive relation between the level and variability of inflation, both across countries and over time. In particular, the model predicts that high (low) inflation tends to be more variable (stable) over time.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0004001.
Length: 25 pages
Date of creation: 04 Apr 2000
Date of revision:
Note: 25 pages Adobe.pdf
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Other versions of this item:
- Geraats, Petra M., 1999. "Inflation and Its Variation: An Alternative Explanation," Center for International and Development Economics Research, Working Paper Series qt56b2g3vn, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
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- Paolo Surico, 2008.
"Measuring the Time Inconsistency of US Monetary Policy,"
London School of Economics and Political Science, vol. 75(297), pages 22-38, 02.
- Paolo Surico, 2004. "Measuring the Time-Inconsistency of US Monetary Policy," Macroeconomics 0401006, EconWPA.
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- Paolo Surico, 2004. "Measuring the time-inconsistency of US monetary policy," Money Macro and Finance (MMF) Research Group Conference 2003 96, Money Macro and Finance Research Group.
- Tsyplakov, Alexander, 2010. "The links between inﬂation and inﬂation uncertainty at the longer horizon," MPRA Paper 26908, University Library of Munich, Germany.
- Petra M. Geraats, 2006.
"Transparency of Monetary Policy: Theory and Practice,"
CESifo Economic Studies,
CESifo, vol. 52(1), pages 111-152, March.
- Geraats, P.M, 2005. "Transparency of Monetary Policy: Theory and Practice," Cambridge Working Papers in Economics 0549, Faculty of Economics, University of Cambridge.
- Petra Geraats, 2005. "Transparency of Monetary Policy: Theory and Practice," CESifo Working Paper Series 1597, CESifo Group Munich.
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