Publication
Jun 2008
The publication analyzes how central banks should manage disinflation policy in the face of imperfect information about private sector inflation expectations. The report features a model that examines parameter uncertainty and a discussion on private sector behavior regarding credibility of the central bank’s inflation target. The authors argue that imperfect information is a reflection of uncertainty about the effects of past policy actions.
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English (PDF, 24 pages, 332 KB) |
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Author | Mewael F Tesfaselassie, Eric Schaling |
Series | Kiel Institute Working Papers |
Issue | 1429 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2008 Kiel Institute for the World Economy. |