| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP2329
|
| DP2329 One Money, One Market: Estimating the Effect of Common Currencies on Trade |
| Andrew Rose
|
| 发表日期 | 1999-12-17
|
| 出版年 | 1999
|
| 语种 | 英语
|
| 摘要 | The paper discusses several issues related to how monetary policy should be conducted in an era of price stability. Low inflation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable loss function (corresponding to flexible inflation targeting) is discussed, including the index and level for the inflation target. Three ways of maintaining price stability are examined, namely (1) a commitment to a simple instrument rule, (2) "forecast targeting," and (3) monetary targeting. Both (1) and (3) are found to be inferior to forecast targeting. The benefits of credibility (private inflation expectations coinciding with the inflation target) are discussed. Credibility improves the tradeoff between inflation variability, output-gap variability and instrument variability and makes it easier for the central bank to meet is inflation target. The threat of deflation and a liquidity trap is examined. Transparent inflation targeting and a contingency plan with emergency measures, including a coordinated fiscal and monetary expansion, are likely to avoid a liquidity trap, but also contribute to escaping from one if already trapped. |
| 主题 | International Macroeconomics
|
| 关键词 | Credibility
Deflation
Inflation target
Liquidity trap
Price-level targeting
|
| URL | https://cepr.org/publications/dp2329
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/531420
|
推荐引用方式
GB/T 7714 |
Andrew Rose. DP2329 One Money, One Market: Estimating the Effect of Common Currencies on Trade. 1999.
|
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