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2 edition of Optimal inflation targets, "conservative" central banks, and linear inflation contracts found in the catalog.

Optimal inflation targets, "conservative" central banks, and linear inflation contracts

Lars E. O. Svensson

Optimal inflation targets, "conservative" central banks, and linear inflation contracts

by Lars E. O. Svensson

  • 5 Want to read
  • 21 Currently reading

Published by Centre for Economic Policy Research in London .
Written in English


Edition Notes

StatementLars E.O. Svensson.
SeriesDiscussion paper series / Centre for Economic Policy Research -- No.1249
ContributionsCentre for Economic Policy Research.
ID Numbers
Open LibraryOL19847514M

In this case, a simple linear or affine contract does not work due to the lack of self-enforcement. We show that an also relatively simple form of contracts, ``capped-linear'' contracts, will satisfy the self-enforcement requirement and is optimal. Inflation-adjusted bonds: Bonds with interest rates that adjust in order to compensate the holder for the impact of inflation. Inflation-targeting regime: An economic policy in which the central bank of a country estimates the “target” inflation rate and uses monetary tools to steer actual inflation to the targeted inflation.

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Optimal inflation targets, "conservative" central banks, and linear inflation contracts by Lars E. O. Svensson Download PDF EPUB FB2

"Optimal Inflation Targets, `Conservative' Central Banks, and Linear Inflation Contracts," NBER Working PapersNational Bureau of Economic Research, Inc. Svensson, Lars E O, "Optimal Inflation Targets, 'Conservative' Central Banks, and Linear Inflation Contracts," CEPR Discussion PapersC.E.P.R.

Discussion Papers. Downloadable. Inflation target regimes (like those of New Zealand, Canada, U.K., Sweden and Finland) are interpreted as having explicit inflation targets and implicit output/unemployment targets. Without output-unemployment persistence delegation of monetary policy to a discretionary instrument-independent central bank with an optimal inflation target can eliminate.

Optimal inflation targets, "conservative" central banks, and linear inflation contracts. Cambridge, MA: National Bureau of Economic Research, © (OCoLC) Material Type: Internet resource: Document Conservative central banks Book, Internet Resource: All Authors / Contributors: Lars E O Svensson; National Bureau of Economic Research.

Optimal inflation targets, "conservative" central banks, and linear inflation contracts. Cambridge, MA: National Bureau of Economic Research, © (OCoLC) Material Type: Document, Internet resource: Document Type: Internet Resource, Computer File: All Authors / Contributors: Lars E O Svensson; National Bureau of Economic Research.

"Optimal Inflation Tar- gets, 'Conservative' Central Banks, and Linear Inflation Contracts." National Bu- reau of Economic Research (Cambridge, MA) Working Paper No.September ____."Optimal Inflation 'Targets, 'Conser- vative' Central Banks, and Linear. Optimal inflation targets, “conservative” central banks, and linear inflation contracts: Comment.

American Economic Review, 89 (1), – CrossRef Google Scholar. The countries in question are Canada, New Zealand, Sweden, and the United Kingdom, all of which adopted official inflation targets between and 1 As these countries instituted their inflation targets with substantially different legislative provisions and linear inflation contracts book targeting procedures, their experiences should eventually provide useful Cited by: A second challenge stems from the fact that the optimal monetary policy under commitment to an inflation objective is oriented toward minimizing variability in the real economy as well as keeping inflation low and stable.

15 As a consequence, when a given shock causes inflation to deviate significantly from the numerical objective, the central. The Walsh Contracts for Central Bankers Are Optimal After All.

with either inflation targets, or the appointment of a conservative central banker. Central Banks, and Linear Inflation. Alex Cukierman (), ‘Central Bank Independence and Monetary Control’ PART IV INFLATION TARGETING 9. Carl E. Walsh (), ‘Optimal Contracts for Central Bankers’ Lars E.O.

Svensson (), ‘Optimal Inflation Targets, “Conservative” Central Banks, and Linear Inflation Contracts’ Carl E. Walsh (), ‘Optimal Contracts for Central Bankers’ Lars E.O.

Svensson (), ‘Optimal Inflation Targets, “Conservative” Central Banks, and Linear Inflation Contracts’ PART II CENTRAL BANKING: HOW TO DESIGN THE MONETARY ARCHITECTURES A Central Bank Independence The analysis considers both the optimal choice of central banker and the potential role for a linear inflation contract.

The optimal set of arrangements is a central banker who attaches less. Optimal Inflation Targets, `Conservative' Central Banks, and Linear Inflation Contracts w Published: American Economic Rev pp.

() citation courtesy of. January The Swedish Experience of an Inflation Target w Published: Inflation Targets, Leonardo Leiderman and Lars E.O.

Svensson, editors. London: CEPR, _____, "Optimal inflation targets, 'conservative' central banks, and linear inflation contracts," American Economic Review 87 (), Taylor, John B., "Discretion versus policy rules in practice," Carnegie-Rochester Conference Series on Public Policy 39 (Dec ), Credibility of optimal monetary delegation Jensen, Henrik,In: American Economic Review (Print Edition).

87, 5, p. Research output: Contribution to journal › Journal article › Research › peer-review. Book File Downloads Abstract Views; Last month: 3 months: 12 months: Total: Last month: 3 months: 12 months: Total: International Seminar on Macroeconomics (ISOM).

It has been three years since the NBER's Program in International Finance and Macroeconomics was last reviewed in the NBER Reporter. During this period, many researchers have continued to tackle the traditional problems of international finance, including: 1) the large and persistent apparent deviations from uncovered interest parity; 2) insufficient global.

Monetary delegation to independent central banks is the institutional standard for responsible monetary policy making. Governments overcome their own high inflation biases by delegating policy-making discretion to conservative central bankers with political independence and long terms of appointment.

With a formal model of central bank appointments and monetary policy Cited by: 6. Parameters are chosen so that the steady state of regime PRE matches the calibration targets described above, except debt over GDP, for – (see Table 3 below). The theoretical results stated that making a central bank more independent would imply an increase in debt, with no significant variations in long-run by: Abstract: We explore the consequences of losing confidence in the price-stability objective of central banks by quantifying the inflation and deflationary biases in inflation expectations.

In a model with an occasionally binding zero-lower-bound constraint, we show that an inflation bias as well as a deflationary bias exist as a steady-state. where τ is the central bank's inflation target which is assumed to equal the socially optimal rate, is the socially optimal output target (κ > 1), and α and β are the preference parameters for inflation and output stabilisation, respectively (α,β > 0).

22 The central bank aims to stabilise output above its natural rate because of the Cited by: is a group of 97, financial traders that have meaningful conversations about all aspects of the business to help each other learn faster, develop new relationships, and avoid costly mistakes.

Currently there arediscussion threads containing 4, posts. Join Now to Become a Member. Threads with Recent Posts.The approach to analysing optimal monetary policy used by central banks had an additional important the world have struggled to return their economies to full employment or to get inflation to rise to their 2% inflation targets.

4. ‘conservative’ central banks, and linear inflation contracts. Am. Econ. Rev., 87 (March) (), pp Cited by: 9.