title: |
Inflation Targeting, Learning and Q Volatility in Small Open Economies |
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publication: |
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part of series: |
Advances in Intelligent Systems Research | |
ISBN: |
978-90-78677-01-7 | |
ISSN: |
1951-6851 | |
DOI: |
doi:10.2991/jcis.2006.182 (how to use a DOI) | |
author(s): |
Paul McNelis, Guay Lim |
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corresponding author: |
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publication date: |
October 2006 |
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keywords: |
Tobin's Q, learning, monetary policy rules, inflation targets |
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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. |
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copyright: |
©
Atlantis Press. This article is distributed under the
terms of the Creative Commons Attribution License, which permits
non-commercial use, distribution and reproduction in any medium,
provided the original work is properly cited. |
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full text: |