Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55578
Authors: 
Cohen-Cole, Ethan
Cosmaciuc, Bogdan
Year of Publication: 
2006
Series/Report no.: 
Working paper series // Federal Reserve Bank of Boston 06-14
Abstract: 
We show that a monetary policy in which the central bank commits to a randomized inflation target allows for potentially faster-expectations convergence than with a fixed target. The randomized target achieves faster convergence in particular in transition environments: those demonstrating either particularly high or low inflation.
Subjects: 
Monetary policy
asymmetric information
Bayesian rational expectations
commitment
JEL: 
E52
E61
E42
Document Type: 
Working Paper

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