Optimal inflation targets, "conservative" central banks, and linear inflation contracts

Article Abstract:

An inflation-targeting regime in countries with inflation and employment targets is defined as principal-agent arrangement where the central bank is tasked with monetary policy by society. Results from the analysis of inflation-targeting properties in relation to monetary policy show several empirical predictions. Firstly, realized inflation rates should surpass the inflation target. Secondly, inflation targets will usually be imperfectly credible. Lastly, lower inflation need not necessarily be equated with greater output variability.

Public Finance Activities, Economics, Research and Development in the Social Sciences and Humanities, Fiscal Policy, Research, Analysis, Inflation (Finance), Monetary policy, Inflation (Economics)

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Operational Interest Rate Rules

Article Abstract:

A simplified rational expectiations framework is developed to show that monetary policy can influence output. Money supply is pegged to interest rates so that the central bank can exercise control. Optimal policy is obtained through the use of a specific set of variables.

Economic aspects, Interest rates

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The Polish zloty, 1990-1999: success and underpeformance

Article Abstract:

Factors affecting the performance of the Polish zloty, including the National Bank of Poland's policies, are examined in detail.

Exchange Rates, Poland, Prices and rates, Zloty (Poland)

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