Jump to ContentJump to Main Navigation
Show Summary Details
In This Section

The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Lambertini, Luisa / Nimark, Kristoffer / Wang, Pengfei

2 Issues per year


IMPACT FACTOR 2015: 0.164
5-year IMPACT FACTOR: 0.403

SCImago Journal Rank (SJR) 2015: 0.205
Source Normalized Impact per Paper (SNIP) 2015: 0.317
Impact per Publication (IPP) 2015: 0.222

Online
ISSN
1935-1690
See all formats and pricing
In This Section

Of Nutters and Doves

Martin R. Bodenstein
  • 1Federal Reserve Board,
/ Roc Armenter
  • 2Federal Reserve Board,
Published Online: 2009-09-08 | DOI: https://doi.org/10.2202/1935-1690.1947

Under a large degree of extrinsic inflation persistence, there is a strong yet simple case for inflation targeting even if we are uncertain about many other dimensions of the economy. If inflation persistence is high and driven by extrinsic sources, even an excessively strict inflation-targeting regime is preferable to full policy discretion. Our result is entirely built on stabilization policy: long-run inflation rates are optimal under full policy discretion in our model. It is instead the medium-term dynamics of inflation expectations that render the policy response under discretion worse than inaction.

Keywords: inflation targeting; policy discretion; robust policies

About the article

Published Online: 2009-09-08



Citation Information: The B.E. Journal of Macroeconomics, ISSN (Online) 1935-1690, DOI: https://doi.org/10.2202/1935-1690.1947. Export Citation

Comments (0)

Please log in or register to comment.
Log in