Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/278588 
Erscheinungsjahr: 
2023
Schriftenreihe/Nr.: 
ECB Occasional Paper No. 322
Verlag: 
European Central Bank (ECB), Frankfurt a. M.
Zusammenfassung: 
This paper discusses the normative implications of the micro evidence on heterogeneity in price setting gathered by the Price-setting Microdata Analysis Network (PRISMA) for the level of inflation that central banks should target. The micro price data underlying the consumer price index are used to estimate relative price trends over the product life cycle. Minimising the welfare consequences of relative price distortions in the presence of these trends requires targeting a significantly positive inflation rate in France, Germany and Italy: the steady-state inflation rate, jointly maximising welfare in all three countries, ranges from 1.1% to 1.7%. Other considerations not taken into account in the present paper may push up optimal inflation targets further. The welfare costs of targeting an inflation rate of zero, as suggested by monetary models ignoring relative price trends, or of targeting 4%, turn out to be substantial.
Schlagwörter: 
optimal inflation target
relative price trends
welfare
JEL: 
E31
E52
Persistent Identifier der Erstveröffentlichung: 
ISBN: 
978-92-899-6151-6
Dokumentart: 
Research Report

Datei(en):
Datei
Größe
399.79 kB





Publikationen in EconStor sind urheberrechtlich geschützt.