Sustainability, flexibility, and inflation targeting
This paper examines sustainability of an inflation-targeting policy regime in terms of sustainable equilibrium using a canonical model in the recent literature. Overly flexible inflation targeting is not sustainable. Strict inflation targeting is sustainable only when shock persistence is high enough.
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- repec:oup:qjecon:v:100:y:1985:i:4:p:1169-89 is not listed on IDEAS
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