EconStor >
Cardiff University >
Cardiff Business School, Cardiff University >
Cardiff Economics Working Papers, Cardiff Business School, Cardiff University >

Please use this identifier to cite or link to this item:
Title:Speed limit policies versus inflation targeting: A free lunch? PDF Logo
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
Document Type:Working Paper
Appears in Collections:Cardiff Economics Working Papers, Cardiff Business School, Cardiff University

Files in This Item:
File Description SizeFormat
578250209.pdf218.53 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.