Hidden Bibliographic Details
| Varying Form of Title: | At head of title: IMF Institute
|
|---|
| Other authors / contributors: | Rebei, Nooman, 1972- author.
IMF Institute, issuing body.
|
|---|
| ISBN: | 9781463986254
1463986254
9781463944926
1463944926
|
|---|
| Notes: | Title from PDF title page (IMF Web site, viewed March 9, 2012).
"January 2012."
Includes bibliographical references (pages 41-42).
|
|---|
| Summary: | This paper investigates optimized monetary policy rules in the presence of government intervention to stabilize prices of certain categories of goods and services. The paper estimates a small-scale, structural equilibrium model with a sticky-price sector and a subsidized price sector for a large number of countries using Bayesian methods. The main result of this paper is that strict headline inflation targeting could be outperformed by sectoral inflation targeting, output gap stabilization, or a combination of these. In addition, several country cases exhibit lower performance of both headline and core inflation stabilization, the two most common policies in modern central banks' practices. For practical monetary policy design, we numerically identify country specific thresholds for the degree of government intervention in price setting under which core inflation targeting turns out to be the optimal choice in the context of implementable Taylor rules.
|
|---|
| Other form: | Print version: Rebei, Nooman. Price Subsidies and the Conduct of Monetary Policy. Washington : International Monetary Fund, ©2012 9781463931209
|
|---|
