Calvo-type rules and the forward-looking behavior of inflation targeting central banks

Eurilton Araújo and Débora Gouveia ()
Additional contact information
Débora Gouveia: Insper Institute of Education and Research

Economics Bulletin, 2013, vol. 33, issue 3, 2042-2051

Abstract: We estimate small open economy models in which inflation targeting central banks respond to a discounted infinite sum of expected inflation and output gaps (Calvo-type rules). The results support Calvo-type rules for Australia and Canada, and suggest longer targeting horizons for inflation compared with output gaps.

Keywords: Calvo-type rules; Bayesian estimation; inflation targeting (search for similar items in EconPapers)
JEL-codes: C0 E5 (search for similar items in EconPapers)
Date: 2013-08-13
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I3-P192.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-13-00474

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().