Expectational stability under non-zero trend inflation
This study examines the expectational stability of the rational expectation equilibria(REE) under Taylor rules when trend inflation is non-zero. We find that whether or not a higher (lower) trend inflation makes the REE more (less) unstable depends largely on the data (such as contemporaneous data, forecasts and lagged data) used in the conduct of monetary policy.
|Date of creation:||03 Sep 2009|
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- Timothy Cogley & Argia M. Sbordone, 2008. "Trend Inflation, Indexation, and Inflation Persistence in the New Keynesian Phillips Curve," American Economic Review, American Economic Association, vol. 98(5), pages 2101-26, December.
- Guido Ascari & Tiziano Ropele, 2007.
"Trend Inflation, Taylor Principle and Indeterminacy,"
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1332, Kiel Institute for the World Economy.
- Guido Ascari & Tiziano Ropele, 2009. "Trend Inflation, Taylor Principle, and Indeterminacy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(8), pages 1557-1584, December.
- Guido Ascari & Tiziano Ropele, 2005. "Trend Inflation, Taylor Principle and Indeterminacy," Working Papers 93, University of Milano-Bicocca, Department of Economics, revised Oct 2005.
- Guido Ascari & Tiziano Ropele, 2009. "Trend inflation, Taylor principle and indeterminacy," Temi di discussione (Economic working papers) 708, Bank of Italy, Economic Research and International Relations Area.
- Guido Ascari & Tiziano Ropele, 2009. "Trend Inflation, Taylor Principle and Indeterminacy," Quaderni di Dipartimento 097, University of Pavia, Department of Economics and Quantitative Methods.
- Ascari, Guido & Ropele, Tiziano, 2007. "Trend Inflation, Taylor Principle and Indeterminacy," Kiel Working Papers 1332, Kiel Institute for the World Economy (IfW).
- Ascari, Guido & Ropele, Tiziano, 2007.
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Elsevier, vol. 54(8), pages 2568-2583, November.
- Michael T. Kiley, 2007.
"Is Moderate-to-High Inflation Inherently Unstable?,"
International Journal of Central Banking,
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- Michael T. Kiley, 2004. "Is moderate-to-high inflation inherently unstable?," Finance and Economics Discussion Series 2004-43, Board of Governors of the Federal Reserve System (U.S.).
- Michael Kiley, 2004. "Is Moderate-To-High Inflation Inherently Unstable?," Econometric Society 2004 North American Summer Meetings 193, Econometric Society.
- Argia M. Sbordone, 2007.
"Inflation persistence: alternative interpretations and policy implications,"
286, Federal Reserve Bank of New York.
- Sbordone, Argia M., 2007. "Inflation persistence: Alternative interpretations and policy implications," Journal of Monetary Economics, Elsevier, vol. 54(5), pages 1311-1339, July.
- Bullard, James & Mitra, Kaushik, 2002.
"Learning about monetary policy rules,"
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Elsevier, vol. 49(6), pages 1105-1129, September.
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