Inflation targets, credibility, and persistence in a simple sticky-price framework

Karl Whelan () and Jeremy Rudd

Open Access publications from School of Economics, University College Dublin

Abstract: This paper presents a re-formulated version of a canonical sticky-price model that has been extended to account for variations over time in the central bank's inflation target. We derive a closed-form solution for the model, and analyze its properties under various parameter values. The model is used to explore topics relating to the effects of disinflationary monetary policies and inflation persistence. In particular, we employ the model to illustrate and assess the critique that standard sticky-price models generate counterfactual predictions for the effects of monetary policy.

Keywords: Inflation; Phillips curve; Inflation (Finance); Phillips curve; Monetary policy (search for similar items in EconPapers)
Date: 2003-07
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Citations: View citations in EconPapers (1)

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http://hdl.handle.net/10197/227 First version, 2003 (application/pdf)

Related works:
Working Paper: Inflation Targets, Credibility and Persistence In a Simple Sticky-Price Framework (2003)
Working Paper: Inflation targets, credibility, and persistence in a simple sticky-price framework (2003)
Working Paper: Inflation targets, credibility and persistence in a simple sticky-price framework (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:oapubs:10197/227

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