Title: Inflation-targeting, price-path targeting and indeterminacy
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.
Subjects: Econometric models, Inflation (Finance), Monetary policy, Pricews, Inflation targeting, Prices