Inflation Expectations and the Stability Properties of Nominal GDP Targeting
Bibliographic Data
| ID | 9717103 |
|---|---|
| Authors | Richard Dennis (0000-0003-3267-4205, Australian National University, corresponding author) |
| Year | 2001 |
| Volume | 111 |
| Issue | 468 |
| Pages | 103-113 |
| Publication date | 2001-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/1468-0297.00590 |
| OpenAlex | W2012546528 |
| Language | EN |
| Citations received | 1 |
| References cited | 6 |
Ball (1999) uses a small closed economy model to show that nominal GDP targeting can lead to instability. This paper extends Ball's model to uncover the role inflation expectations play in generating this instability. Allowing inflation expectations to be formed by the more general mixed expectations process, which encompasses Ball's model, we show that nominal GDP targeting is unlikely to lead to instability. We further show that in Ball's model where exact targeting causes instability that moving to inexact targeting restores stability
Economic stability · Economics · Inflation (cosmology · Keynesian economics · Law and economics · Monetary economics · Stability (learning theory · Volume (thermodynamics · Computer Science · Economic Growth and Productivity · Economic Theory and Policy · Monetary Policy and Economic Impact
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,04 |
| Citation span | 2002 - 2002 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |