Open-Economy Inflation Targeting

Lars Svensson

Working Papers from Stockholm - International Economic Studies

Abstract: The paper extends previous analysis of closed-economy inflation targeting to a small open economy with forward-looking aggregate supply and demand with some microfoundations, and with stylized realistic lags in the different transmission channels for monetary policy. The paper compares targeting of CPI and domestic inflation, strict and flexible inflation targeting, and inflation-targeting reaction functions and the Talyor rule. The optimal monetary policy response to several different shocks is examined.

Keywords: INFLATION; MONETARY POLICY; CENTRAL BANKS (search for similar items in EconPapers)
JEL-codes: E31 E52 E58 (search for similar items in EconPapers)
Pages: 50 pages
Date: 1998
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Citations: View citations in EconPapers (62)

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Related works:
Journal Article: Open-economy inflation targeting (2000)
Working Paper: Open-Economy Inflation Targeting (2000)
Working Paper: Open-Economy Inflation Targeting (1998)
Working Paper: Open-Economy Inflation Targeting (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:stocin:638

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