Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/3918
Full metadata record
DC FieldValueLanguage
dc.contributor.authorTesfaselassie, Mewael F.en_US
dc.contributor.authorSchaling, Ericen_US
dc.contributor.authorEijffinger, Sylvester C. W.en_US
dc.date.accessioned2009-01-28T14:15:12Z-
dc.date.available2009-01-28T14:15:12Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/3918-
dc.description.abstractIn this paper we incorporate the term structure of interest rates in a standard inflation forecast targeting framework. We find that under flexible inflation targeting and uncertainty in the degree of persistence in the economy, allowing for active learning possibilities has effects on the optimal interest rate rule followed by the central bank. For a wide range of possible initial beliefs about the unknown parameter, the dynamically optimal rule is in general more activist, in the sense of responding aggressively to the state of the economy, than the myopic rule for small to moderate deviations of the state variable from its target. On the other hand, for large deviations, the optimal policy is less activist than the myopic and the certainty equivalence policies.-
dc.language.isoengen_US
dc.publisher|aCentre for Economic Policy Research |cLondon-
dc.relation.ispartofseries|aCEPR Discussion Paper Series, Centre for Economic Policy Research (CEPR), London |x5896-
dc.subject.jelC53-
dc.subject.jelE43-
dc.subject.jelE52-
dc.subject.jelF33-
dc.subject.ddc330en_US
dc.subject.stwInflation Targetingen_US
dc.subject.stwZinsstrukturen_US
dc.subject.stwRationale Erwartungen_US
dc.subject.stwLernenen_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwTheorieen_US
dc.titleLearning about term structure and optimal rules for inflation targetingen_US
dc.typeWorking Paperen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.printppn520500644en_US

Files in This Item:
File
Size
300.45 kB





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