Since 2014
Can inflation targeting mitigate monetary policy time-inconsistency?
Journal of Economic & Financial Studies
View Archive Info| Field | Value | |
| Title |
Can inflation targeting mitigate monetary policy time-inconsistency?
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| Creator |
Montes, Gabriel Caldas
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| Subject |
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Cointegration; Monetary policy; Inflation targeting time-inconsistency. E31; E52; E61 |
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| Description |
Although the adoption of inflation targeting can, on average, bring benefits to developing countries, however, adopting this scheme is not necessarily sufficient to mitigate the time-inconsistency problem of monetary policy. The present paper makes use of two theoretical models in order to analyze for the Brazilian case whether it is possible for the monetary authority to conduct time-inconsistent monetary policies even under inflation targeting. The results obtained for Brazil allow one to conjecture that the traditional argument that the adoption of inflation targeting can avoid the time-inconsistency problem is not necessarily true.
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| Publisher |
LAR Center Press
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| Contributor |
—
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| Date |
2014-04-21
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://journalofeconomics.org/index.php/site/article/view/131
10.18533/jefs.v2i02.131 |
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| Source |
Journal of Economic & Financial Studies; Vol 2, No 02 (2014): April; 15-25
2379-9471 2379-9463 |
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| Language |
eng
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| Relation |
http://journalofeconomics.org/index.php/site/article/view/131/221
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| Rights |
Copyright (c) 2015 Journal of Economic & Financial Studies
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