inflation target, forward-looking model, model-consistent expectations

Publication date: 14 May 2004 | Publication type: NIESR Discussion Paper | Authors: Weale, M | JEL classification: E31, E52, E61 | NIESR discussion paper number: 231
Studies of inflation targeting make the distinction between strict and flexible inflation targeting. The problem of strict inflation targeting has so far been analysed by treating it as a special case of a standard optimal control problem and the algorithms used have not provided an exact solution...