Type

Working Paper

Authors

Jeremy Rudd
Karl Whelan

Subjects

Economics

Topics
inflation monetary policy inflation finance monetary policies central bank phillips curve inflation persistence canonical model

Inflation targets, credibility, and persistence in a simple sticky-price framework (2003)

Abstract This paper presents a re-formulated version of a canonical sticky-price model that has been extended to account for variations over time in the central bank's inflation target. We derive a closed-form solution for the model, and analyze its properties under various parameter values. The model is used to explore topics relating to the effects of disinflationary monetary policies and inflation persistence. In particular, we employ the model to illustrate and assess the critique that standard sticky-price models generate counterfactual predictions for the effects of monetary policy.
Collections Ireland -> University College Dublin -> School of Economics
Ireland -> University College Dublin -> College of Social Sciences and Law
Ireland -> University College Dublin -> Economics Research Collection

Full list of authors on original publication

Jeremy Rudd, Karl Whelan

Experts in our system

1
Karl Whelan
University College Dublin
Total Publications: 70