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http://hdl.handle.net/10419/65805
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| Title: | | Speed limit policies versus inflation targeting: A free lunch?  |
| Authors: | | Hatcher, Michael C. |
| Issue Date: | | 2008 |
| Series/Report no.: | | Cardiff Economics Working Papers E2008/20 |
| Abstract: | | Inflation targeting is currently popular with central banks. Is this popularity justified? I investigate this question by comparing a speed limit policy and inflation targeting with a Lucas-type Phillips curve capturing output gap persistence. If the output gap is at least moderately persistent, a speed limit policy can: (1) partly eliminate the statecontingent inflation bias, and (2) reduce inflation variability at no output gap variability cost. |
| Subjects: | | inflation targeting speed limit policy inflation bias discretion stabilisation |
| JEL: | | E50 E52 E58 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Cardiff Economics Working Papers
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