Optimal monetary policy under low trend inflation

Journal of Monetary Economics

Volumn 54, Issue 8, 2007, Pages 2568-2583

  Ascari, Guido ^a   Ropele, Tiziano ^b,c  

^a UNIVERSITY OF PAVIA   (Italy)

^b UNIVERSITY OF MILANO BICOCCA   (Italy)

^c Bank of Italy ^*  (Italy)

Author keywords

Optimal monetary policy; Trend inflation

Indexed keywords

EID: 36048986343     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jmoneco.2007.06.024     Document Type: Article

References (19)

1. Amano, R., Ambler, S., Rebei, N., 2005. The macroeconomic effects of non-zero trend inflation. The Journal of Money, Credit and Banking, forthcoming.
2. Ascari G. Staggered prices and trend inflation: some nuisances. Review of Economic Dynamics 7 (2004) 642-667
3. Ascari, G., Ropele, T., 2005. Trend inflation, Taylor principle and indeterminacy. Quaderni di Dipartimento #178 (10-05), Dipartimento di Economia Politica e Metodi Quantitativi, University of Pavia.
4. Ball L., and Cecchetti S. Inflation and uncertainty at short and long horizons. Brookings Papers on Economic Activity 1 (1990) 215-254
5. Calvo G.A. Staggered prices in a utility-maximising framework. Journal of Monetary Economics 12 (1983) 383-398
6. Caporale T., and McKiernan B. High and variable inflation: further evidence on the Friedman hypothesis. Economics Letters 54 (1997) 65-68
7. Christiano L.J., Eichenbaum M., and Evans C.L. Nominal rigidities and the dynamic effects of a shock to monetary policy. Journal of Political Economy 113 (2005) 1-45
8. Clarida R., Galí J., and Gertler M. The science of monetary policy: a New Keynesian perspective. Journal of Economic Literature 37 (1999) 1661-1707
9. Friedman M. Nobel lecture: inflation and unemployment. Journal of Political Economy 85 (1977) 451-472
10. Galí J. New perspectives on monetary policy, inflation, and the business cycle. In: Dewatripont M., Hansen L., and Turnovsky S. (Eds). Advances in Economic Theory (2003), Cambridge University Press, Cambridge, UK 151-197
11. Goodfriend, M., King, R.G., 2001. The case for price stability. NBER Working Paper No. 8423.
12. Gray J.A. Wage indexation: a macroeconomic approach. Journal of Monetary Economics 2 (1976) 221-235
13. Hansen G.D. Indivisible labor and the business cycle. Journal of Monetary Economics 16 (1985) 309-327
14. Khan A., King R.G., and Wolman A.L. Optimal monetary policy. Review of Economic Studies 70 (2003) 825-860
15. Schmitt-Grohé, S., Uribe, M., 2004. Optimal simple and implementable monetary and fiscal rules. NBER Working Paper No. 10253.
16. Schmitt-Grohé, S., Uribe, M., 2005. Optimal inflation stabilization in a medium-scale macroeconomic model. NBER Working Paper No. 11854.
17. Soderlind P. Solution and estimation of RE macromodels with optimal policy. European Economic Review 43 (1999) 813-823
18. Woodford, M., 1999. Optimal monetary policy inertia. Manchester School Suppl. 67, 1-35.
19. Woodford M. Interest and Prices: Foundations of a Theory of Monetary Policy (2003), Princeton University Press, Princeton, NJ