Inflation-targeting, price-path targeting and indeterminacy
By: by Robert D. Dittmar and William T. Gavin.
Contributors: Gavin, William T.; Federal Reserve Bank of St. Louis.
Series: Working paper ;; 2004-007B; Working paper (Federal Reserve Bank of St. Louis : Online) ;; 2004-007B.
Publisher: Federal Reserve Bank of St. Louis
Published: 2004
Place of publication: [St. Louis, Mo.]
Language: eng
Format: Electronic resource
Subjects: Monetary policy -- Econometric models.; Inflation (Finance) -- Econometric models.; Pricews -- Econometric models.
Description: "In this paper, we examine the areas of indeterminacy in a flexible price RBC model with shopping time role for money and a central bank that uses an interest rate rule to target inflation and/or the price level.  We present analytical results showing that, although inflation targeting often results in real indeterminacy, a price level target generally delivers a unique equilibrium for a relevant range of policy parameters"--Federal Reserve Bank of St. Louis web site.
Notes: Includes bibliographical references.
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