EconPapers    
Economics at your fingertips  
 

Optimal Inflation Targets, “Conservative” Central Banks, and Linear Inflation Contracts: Comment

Roel Beetsma and Henrik Jensen ()

No 98-11, EPRU Working Paper Series from Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics

Abstract: Recently, Svensson (1997) has shown that a combination of state-contingent inflation targeting and central banker "conservatism" produces optimal monetary policy if employment is persistent. We argue that the state-contingent nature of the scheme may undermine its credibility. We then show that the optimal policy in Svensson's model can nevertheless be attained through state-independent delegation.

New Economics Papers: this item is included in nep-mac
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://web.econ.ku.dk/epru/files/wp/wp9811.pdf (application/pdf)

Related works:
Journal Article: Optimal Inflation Targets, "Conservative" Central Banks, and Linear Inflation Contracts: Comment (1999) Downloads
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:kud:epruwp:98-11

Access Statistics for this paper

More papers in EPRU Working Paper Series from Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics �ster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Hoffmann ().

 
Page updated 2020-09-21
Handle: RePEc:kud:epruwp:98-11