NOMINAL GDP TARGETING AND CENTRAL BANK CONSERVATIVENESS

Yuwen Dai (First Author), Bin Xu (Participant Author)

科研成果: 期刊稿件期刊论文

摘要

In the literature on monetary economics, there is the ‘inflationary bias’ result which predicts that the rate of inflation will be biased towards a higher level under discretionary monetary policy than under a rule‐based policy regime. It is established that a credible nominal target can eliminate this ‘inflationary bias’. In this paper, we examine the case of nominal GDP targeting, which is a rule‐based monetary regime. Depending on the degree of conservativeness by the central bank, we show in a stylized model the choice of different combination of inflation and real GDP targets can still result in an ‘inflationary bias’, and there also exists the possibility of a ‘dis‐inflationary bias’.
源语言英语
页(从-至)1
期刊Bulletin of Economic Research
Online Version
DOI
出版状态已出版 - 2019

Corresponding author email

daiyuwen@shisu.edu.cn

关键词

  • E52
  • E58
  • central bank
  • conservatism
  • inflationary bias
  • monetary policy
  • nominal GDP targeting

成果物的来源

  • ABDC-B

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