Hidden Bibliographic Details
| Other authors / contributors: | Wagner, Helmut, 1951- author.
International Monetary Fund. Research Department.
|
|---|
| ISBN: | 1283515857
9781283515856
9781451985009
1451985002
1462358888
9781462358885
1452792526
9781452792521
9786613828309
6613828300
|
|---|
| Digital file characteristics: | text file
|
|---|
| Notes: | Includes bibliographical references.
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
|
|---|
| Summary: | This paper studies the optimal design of monetary policy in an optimizing two-country sticky price model. We suppose that the production sequence of final consumption goods stretches across both countries and is associated with vertical trade. Prices of final consumption goods are sticky in the consumer's currency. Pursuing an inward-looking policy, as suggested in recent work, is not optimal in this set-up. We also ask which simple, i.e. non-optimal, targeting rule best supports the welfare maximizing policy. The results hinge critically on the degree of price flexibility and the relative importance of cost-push and productivity shocks. In many cases, a strict targeting of price indices like producer or consumer price indices is dominated by rules that allow for some fluctuations in prices such as nominal income or monetary targeting.
|
|---|
| Other form: | Print version: Berger, Wolfram. International policy coordination and simple monetary policy rules. Washington, D.C. : International Monetary Fund, ©2006
|
|---|
| Standard no.: | 10.5089/9781451985009.001
|
|---|
