Inflation Targeting Under Asymmetric Preferences:
This paper develops and estimates a game-theoretical model of inflation targeting where the central banker''s preferences are asymmetric around the targeted rate. Specifically, positive deviations from the target can be weighted more, or less, severely than negative ones in the central ban...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2001
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Schriftenreihe: | IMF Working Papers
Working Paper No. 01/161 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper develops and estimates a game-theoretical model of inflation targeting where the central banker''s preferences are asymmetric around the targeted rate. Specifically, positive deviations from the target can be weighted more, or less, severely than negative ones in the central banker''s loss function. It is shown that some of the previous results derived under the assumption of symmetry are not robust to this generalization of preferences. Estimates of the central banker''s preference parameters for Canada, Sweden, and the United Kingdom are statistically different from the one implied by the commonly-used quadratic loss function |
Beschreibung: | 1 Online-Ressource (54 p) |
ISBN: | 1451857810 9781451857818 |
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spelling | Ruge-Murcia, Francisco Javier Verfasser aut Inflation Targeting Under Asymmetric Preferences Ruge-Murcia, Francisco Javier Washington, D.C International Monetary Fund 2001 1 Online-Ressource (54 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 01/161 This paper develops and estimates a game-theoretical model of inflation targeting where the central banker''s preferences are asymmetric around the targeted rate. Specifically, positive deviations from the target can be weighted more, or less, severely than negative ones in the central banker''s loss function. It is shown that some of the previous results derived under the assumption of symmetry are not robust to this generalization of preferences. Estimates of the central banker''s preference parameters for Canada, Sweden, and the United Kingdom are statistically different from the one implied by the commonly-used quadratic loss function Online-Ausg http://elibrary.imf.org/view/IMF001/03579-9781451857818/03579-9781451857818/03579-9781451857818.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Ruge-Murcia, Francisco Javier Inflation Targeting Under Asymmetric Preferences |
title | Inflation Targeting Under Asymmetric Preferences |
title_auth | Inflation Targeting Under Asymmetric Preferences |
title_exact_search | Inflation Targeting Under Asymmetric Preferences |
title_exact_search_txtP | Inflation Targeting Under Asymmetric Preferences |
title_full | Inflation Targeting Under Asymmetric Preferences Ruge-Murcia, Francisco Javier |
title_fullStr | Inflation Targeting Under Asymmetric Preferences Ruge-Murcia, Francisco Javier |
title_full_unstemmed | Inflation Targeting Under Asymmetric Preferences Ruge-Murcia, Francisco Javier |
title_short | Inflation Targeting Under Asymmetric Preferences |
title_sort | inflation targeting under asymmetric preferences |
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