Opportunistic and Deliberate Disinflation under Imperfect Credibility
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- The Federal Reserve Board
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Overview: This paper compares the ability of these two approaches to achieve disinflation---and at what cost. We analyze these issues using the Federal Reserve's FRB/US model, which allows alternative assumptions to be made about expectations held by agents in the economy; hence, the credibility of the central bank can be considered in assessing the cost of deliberate and opportunistic disinflations. Read on for more information monetary policy, inflation expectations, policy rules and inflation targets.
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Format: PDF | Size: 156KB | Date: Jan 1998 | Pages: 24



