Optimality criteria of hybrid inflation-price level targeting

László Bokor

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides a comprehensive analysis of the relative performance of inflation targeting, price level targeting, and hybrid targeting of them in a simple three-period steady state to steady state economy facing transmission lag, and derives optimal policies implementing commitment solution under all set of hybrid expectations, social preference, and cost-push shock persistence. The main intention of the examination is to reveal the nature of the interrelations between economic and policy parameters.

Keywords: inflation targeting; price level targeting; hybrid targeting; optimal policy (search for similar items in EconPapers)
JEL-codes: E50 E52 E58 (search for similar items in EconPapers)
Date: 2007-09, Revised 2008-07
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https://mpra.ub.uni-muenchen.de/10278/1/MPRA_paper_10278.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/25356/1/MPRA_paper_25356.pdf revised version (application/pdf)

Related works:
Working Paper: Optimality criteria of hybrid inflation-price level targeting (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:10278

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