Inflation Targeting, Learning and Q Volatility in Small Open Economies

DOI

10.2991/jcis.2006.182How to use a DOI?

Keywords

Tobin's Q, learning, monetary policy rules, inflation targets

Abstract

This paper examines the welfare implications of managing asset-price with consumer-price inflation targeting by monetary authorities who have to learn the laws of motion for both inflation rates. Our results show that the Central Bank can improve welfare if it targets both consumer and asset-price inflation with state-contingent Taylor rules rather than conventional linear Taylor rules.

Copyright

© 2006, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Paul McNelis
AU  - Guay Lim
PY  - 2006/10
DA  - 2006/10
TI  - Inflation Targeting, Learning and Q Volatility in Small Open Economies
BT  - Proceedings of the 9th Joint International Conference on Information Sciences (JCIS-06)
PB  - Atlantis Press
SP  - 565
EP  - 568
SN  - 1951-6851
UR  - https://doi.org/10.2991/jcis.2006.182
DO  - 10.2991/jcis.2006.182
ID  - McNelis2006/10
ER  -