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http://hdl.handle.net/10419/19695
  

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dc.contributor.authorAoki, Kosukeen_US
dc.contributor.authorKimura, Takeshien_US
dc.date.accessioned2009-01-28T16:02:03Z-
dc.date.available2009-01-28T16:02:03Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/19695-
dc.description.abstractWe analyse the interaction between private agents? uncertainty about inflation target and the central bank's data uncertainty. In our model, private agents update their perceived inflation target and the central bank estimates unobservable economic shocks as well as the perceived inflation target. Under those two uncertainties, the learning process of both private agents and the central bank causes higher order beliefs to become relevant, and this mechanism is capable of generating high persistence and volatility of inflation even though the underlying shocks are purely transitory. We also find that the persistence and volatility become smaller as the inflation target becomes more credible, that is, the private agents' uncertainty about inflation target (and hence the bank's data uncertainty) diminishes.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDiscussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2007,18en_US
dc.subject.jelE58en_US
dc.subject.jelE52en_US
dc.subject.ddc330en_US
dc.subject.keywordMonetary policyen_US
dc.subject.keywordcentral banksen_US
dc.subject.stwInflation Targetingen_US
dc.subject.stwGlaubwürdigkeiten_US
dc.subject.stwRisikoen_US
dc.subject.stwInflationserwartungen_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwInflationen_US
dc.subject.stwVolatilitäten_US
dc.subject.stwTheorieen_US
dc.titleUncertainty about perceived inflation target and monetary policyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn543474283en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:6139-
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

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