Asset prices in a flexible inflation targeting framework
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Asset prices in a flexible inflation targeting framework by Stephen G. Cecchetti

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Published by National Bureau of Economic Research in Cambridge, MA .
Written in English


  • Anti-inflationary policies.,
  • Assets (Accounting) -- Prices.,
  • Monetary policy.

Book details:

Edition Notes

StatementStephen G. Cecchetti, Hans Genberg, Sushil Wadhwani.
SeriesNBER working paper series -- no. 8970, Working paper series (National Bureau of Economic Research) -- working paper no. 8970.
ContributionsGenberg, Hans., Wadhwani, Sushil., National Bureau of Economic Research.
The Physical Object
Pagination22 p. ;
Number of Pages22
ID Numbers
Open LibraryOL22436619M

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Get this from a library! Asset prices in a flexible inflation targeting framework. [Stephen G Cecchetti; Hans Genberg; Sushil Wadhwani; National Bureau of Economic Research.] -- Abstract: We argue that there are sound theoretical reasons for believing that an inflation targeting central bank might improve macroeconomic performance by reacting to asset price misalignments. Downloadable! This paper attempts to conceptualize the debate regarding the role of asset prices and perceived financial imbalances in the formation of monetary policy from the perspective of theoretically optimal policy responses. While much of the disagreement can be reconciled within the framework of flexible inflation targeting, defined as a commitment to a targeting rule, . Integrated inflation targeting iii Abstract This book provides a thorough assessment of recent experiences with inflation targeting (IT), the challenges it has faced since the global financial crisis, and ways in which these challenges have been, or should be, addressed. The discussion is conducted -income countries from the perspective of middleCited by: 1.   Cecchetti, Stephen, Hans Genberg, John Lipsky, and Sushil Wadhwani, "Asset Prices and Central Bank Policy," Geneva Report on the World Economy 2. CEPR and ICMB, Cecchetti, Stephen, Hans Genberg, and Sushil Wadhwani, "Asset Prices in a Flexible Inflation Targeting Framework," NBER working paper , June

December Inflation targeting is a flexible policy framework that allows a country’s central bank to exercise some degree of discretion without putting in jeopardy its main objective of maintaining stable prices. In the past few years a number of central banks have adopted inflation targeting for monetary policy.   The policy framework of inflation targeting and "flexible" inflation targeting, which allows attention to output and employment as well. Here is part of a verbal reply that I made to a commenter on a paper about inflation targeting and asset prices that Mark Gertler and I presented at the Fed’s Jackson Hole conference in August Inflation targeting is a monetary policy where a central bank follows an explicit target for the inflation rate for the medium-term and announces this inflation target to the public. The assumption is that the best that monetary policy can do to support long-term growth of the economy is to maintain price central bank uses interest rates, its main short-term . Carolyn A. Wilkins is a Canadian economist currently serving as Senior Deputy Governor of the Bank of Canada. Wilkins was appointed to the position of Senior Deputy Governor on May 2, , and will serve a term of seven years. Wilkins is also a member of the Bank of Canada's Board of Directors.

Price level targeting may work better than inflation targeting if there is a risk of falling into a liquidity trap. Policymakers could also try to look at 5-year averages of inflation to adjust, for example, for persistent undershooting of the target. (Svensson) Monetary policy, IT, . Monetary policy and asset prices in an open economy Article in The North American Journal of Economics and Finance 22(2) August with 19 Reads How we measure 'reads'Author: Daisuke Ida.   Consumer price inflation, as measured by the new CPI series, has averaged per cent in FY and is expected to be at per cent in . The FOMC currently uses a flexible inflation-targeting framework to set monetary policy. It is briefly described in the FOMC’s statement on longer-run goals and monetary policy strategy. 1 The U.S. adopted an explicit numerical inflation goal in January This is a symmetric goal of 2 percent, as measured by the year-over-year change in Cited by: 1.