Inflation-target expectations and optimal monetary policy
In countries with credible inflation targeting, it seems plausible to suggest that instead of forming a rational expectation, some firms (inflation-targeters) might simply expect future inflation to always equal its target. This paper analyses the implications of this for optimal monetary policy in...
| Main Author: | |
|---|---|
| Format: | Working paper |
| Published: |
University of Oxford
2005
|