Inflation Targeting: Some Extensions

Lars Svensson

No 5962, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Previous analysis of the implementation of inflation targeting is extended to monetary policy responses to different shocks, consequences of model uncertainty, effects of interest rate smoothing and stabilization, a comparison with nominal GDP targeting, and implications of forward-looking behavior. Model uncertainty, output stabilization, and interest rate stabilization or smoothing all call for a more gradual adjustment of the conditional inflation forecast toward the inflation target. The conditional inflation forecast is the natural intermediate target during inflation targeting.

JEL-codes: E42 E52 (search for similar items in EconPapers)
Date: 1997-03
Note: AP IFM ME
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Citations: View citations in EconPapers (145)

Published as Scandinavian Journal of Economics, vol 101, no 3, pp. 337-361, 1999.

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Related works:
Journal Article: Inflation Targeting: Some Extensions (1999)
Working Paper: Inflation Targeting: Some Extensions (1997)
Working Paper: Inflation Targeting: Some Extensions (1997)
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