Targeting nominal income growth or inflation?

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Standard

Targeting nominal income growth or inflation? / Jensen, Henrik.

I: American Economic Review (Print Edition), Bind 92, Nr. 4, 2002, s. 928-956.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Jensen, H 2002, 'Targeting nominal income growth or inflation?', American Economic Review (Print Edition), bind 92, nr. 4, s. 928-956. https://doi.org/10.1257/00028280260344533

APA

Jensen, H. (2002). Targeting nominal income growth or inflation? American Economic Review (Print Edition), 92(4), 928-956. https://doi.org/10.1257/00028280260344533

Vancouver

Jensen H. Targeting nominal income growth or inflation? American Economic Review (Print Edition). 2002;92(4):928-956. https://doi.org/10.1257/00028280260344533

Author

Jensen, Henrik. / Targeting nominal income growth or inflation?. I: American Economic Review (Print Edition). 2002 ; Bind 92, Nr. 4. s. 928-956.

Bibtex

@article{a90ef27074c511dbbee902004c4f4f50,
title = "Targeting nominal income growth or inflation?",
abstract = "Within a simple New Keynesian model emphasizing forward-looking behavior of private agents, I evaluate optimal nominal income growth targeting versus optimal inflation targeting. When the economy is mainly subject to shocks that do not involve monetary policy trade-offs for society, inflation targeting is preferable. Otherwise, nominal income growth targeting may be superior because it induces inertial policy making, which improves the inflation-output-gap trade-off. Somewhat paradoxically, inflation targeting may be relatively less favorable the more society dislikes inflation, and the more persistent are the effects of inflation-generating shocks",
author = "Henrik Jensen",
note = "JEL Classification: E42, E52, F58",
year = "2002",
doi = "10.1257/00028280260344533",
language = "English",
volume = "92",
pages = "928--956",
journal = "American Economic Review",
issn = "0002-8282",
publisher = "American Economic Association",
number = "4",

}

RIS

TY - JOUR

T1 - Targeting nominal income growth or inflation?

AU - Jensen, Henrik

N1 - JEL Classification: E42, E52, F58

PY - 2002

Y1 - 2002

N2 - Within a simple New Keynesian model emphasizing forward-looking behavior of private agents, I evaluate optimal nominal income growth targeting versus optimal inflation targeting. When the economy is mainly subject to shocks that do not involve monetary policy trade-offs for society, inflation targeting is preferable. Otherwise, nominal income growth targeting may be superior because it induces inertial policy making, which improves the inflation-output-gap trade-off. Somewhat paradoxically, inflation targeting may be relatively less favorable the more society dislikes inflation, and the more persistent are the effects of inflation-generating shocks

AB - Within a simple New Keynesian model emphasizing forward-looking behavior of private agents, I evaluate optimal nominal income growth targeting versus optimal inflation targeting. When the economy is mainly subject to shocks that do not involve monetary policy trade-offs for society, inflation targeting is preferable. Otherwise, nominal income growth targeting may be superior because it induces inertial policy making, which improves the inflation-output-gap trade-off. Somewhat paradoxically, inflation targeting may be relatively less favorable the more society dislikes inflation, and the more persistent are the effects of inflation-generating shocks

U2 - 10.1257/00028280260344533

DO - 10.1257/00028280260344533

M3 - Journal article

VL - 92

SP - 928

EP - 956

JO - American Economic Review

JF - American Economic Review

SN - 0002-8282

IS - 4

ER -

ID: 136555