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The Range of Equilibria, Inflation Targeting and the Non-Inflationary Expansion

Author

Listed:
  • McDonald, I.M.
  • Sibly, H,

Abstract

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.

Suggested Citation

  • McDonald, I.M. & Sibly, H,, 2001. "The Range of Equilibria, Inflation Targeting and the Non-Inflationary Expansion," Papers 2001-11, Tasmania - Department of Economics.
  • Handle: RePEc:fth:tasman:2001-11
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    More about this item

    Keywords

    INFLATION ; MONETARY POLICY;

    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

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