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A Model for Full-Fledged Inflation Targeting and Application to Ghana [electronic resource] Clinton, Kevin.

Author/Creator:
Clinton, Kevin.
Publication:
Washington, D.C. : International Monetary Fund, 2010.
Format/Description:
Government document
Book
1 online resource (30 p.)
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 10/25.
IMF Working Papers; Working Paper No. 10/25
Status/Location:
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Local subjects:
Actual inflation. (search)
Aggregate demand. (search)
Annual inflation. (search)
Central bank. (search)
Deflation. (search)
Disinflation. (search)
Economic models. (search)
Effects of inflation. (search)
Expectations of inflation. (search)
External shocks. (search)
Foreign exchange. (search)
High inflation. (search)
Increase in inflation. (search)
Increase in interest rates. (search)
Inflation. (search)
Inflation dynamics. (search)
Inflation forecasts. (search)
Inflation objective. (search)
Inflation process. (search)
Inflation rate. (search)
Inflation rates. (search)
Inflation target. (search)
Inflation targeting. (search)
Inflationary consequences. (search)
Inflationary pressures. (search)
Inflationary spiral. (search)
Low inflation. (search)
Low-income developing countries. (search)
Lower inflation. (search)
Model Construction and Estimation. (search)
Monetary authorities. (search)
Monetary economics. (search)
Monetary fund. (search)
Monetary instrument. (search)
Monetary policy. (search)
Monetary Policy (Targets, Instruments, and Effects). (search)
Monetary policy decision. (search)
Monetary policy instrument. (search)
Monetary policy transparency. (search)
National bank. (search)
Optimal monetary policy. (search)
Percent inflation. (search)
Price Level. (search)
Rate of inflation. (search)
Real interest rate. (search)
Real interest rates. (search)
Tight monetary policy. (search)
Variable inflation. (search)
Ghana. (search)
Summary:
A model in which monetary policy pursues full-fledged inflation targeting adapts well to Ghana. Model features include: endogenous policy credibility; non-linearities in the inflation process; and a policy loss function that aims to minimize the variability of output and the interest rate, as well as deviations of inflation from the long-term low-inflation target. The optimal approach from initial high inflation to the ultimate target is gradual; and transitional inflation-reduction objectives are flexible. Over time, as policy earns credibility, expectations of inflation converge towards the long-run target, the output-inflation variability tradeoff improves, and optimal policy responses to shocks moderate.
Notes:
Description based on print version record.
Contributor:
Alichi, Ali.
Clinton, Kevin.
Dagher, Jihad.
Kamenik, Ondra.
Laxton, Douglas.
Mills, Marshall.
Other format:
Print Version:
ISBN:
1451962444:
9781451962444
ISSN:
1018-5941
Publisher Number:
10.5089/9781451962444.001
Access Restriction:
Restricted for use by site license.