What measure of inflation should a developing country central bank target? /

What measure of inflation should a developing country central bank target? /

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Bibliographic Details
Author / Creator:	Anand, Rahul, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, c2015.
Description:	1 online resource (37 pages) : color illustrations.
Language:	English
Series:	IMF working paper ; WP/15/205. IMF working paper ; WP/15/205.
Subject:	Inflation targeting -- Developing countries -- Econometric models. Monetary policy -- Developing countries -- Econometric models. Consumer price indexes -- Developing countries -- Econometric models. Banks and banking, Central -- Developing countries -- Econometric models. Banks and banking, Central -- Econometric models. Consumer price indexes -- Econometric models. Monetary policy -- Econometric models. Developing countries.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12504745

Hidden Bibliographic Details
Other authors / contributors:	Prasad, Eswar S., 1965- author. Zhang, Boyang, author. International Monetary Fund. Institute for Capacity Development.
ISBN:	1513572571 9781513572574
ISSN:	1018-5941
Notes:	"September 2015." "Institute For Capacity Development." Includes bibliographical references (pages 27-29). Description based on online resource; title from pdf title page (IMF.org Web site, viewed October 7, 2015).
Summary:	In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating the flexible price equilibrium. We analyze this result in the context of developing economies, where a large proportion of households are credit constrained and the share of food expenditures in total consumption expenditures is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting improves welfare outcomes. We also compute the optimal price index, which includes a positive weight on food prices but, unlike headline inflation, assigns zero weight to import prices.
Standard no.:	10.5089/9781513572574.001

Description
Summary:	In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating the flexible price equilibrium. We analyze this result in the context of developing economies, where a large proportion of households are credit constrained and the share of food expenditures in total consumption expenditures is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting improves welfare outcomes. We also compute the optimal price index, which includes a positive weight on food prices but, unlike headline inflation, assigns zero weight to import prices.
Item Description:	"September 2015." "Institute For Capacity Development."
Physical Description:	1 online resource (37 pages) : color illustrations.
Bibliography:	Includes bibliographical references (pages 27-29).
ISBN:	1513572571 9781513572574
ISSN:	1018-5941