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Price Level Targeting and Stabilization Policy
Project funded by own resources |
Project title |
Price Level Targeting and Stabilization Policy |
Principal Investigator(s) |
Berentsen, Aleksander
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Organisation / Research unit |
Departement Wirtschaftswissenschaften / Wirtschaftstheorie (Berentsen) |
Project start |
01.01.2009 |
Probable end |
31.12.2055 |
Status |
Active |
Abstract |
We construct a dynamic stochastic general equilibrium model to study optimal monetary stabilization policy. Prices are fully flexible and money is essential for trade. Our main result is that if the central bank pursues a price-level target, it can control inflation expectations and improve welfare by stabilizing short-run shocks to the economy. The optimal policy involves smoothing nominal interest rates which effectively smooths consumption across states. |
Keywords |
Money, Stabilization, Search |
Financed by |
University funds
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Published results () |
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ID |
Autor(en) |
Titel |
ISSN / ISBN |
Erschienen in |
Art der Publikation |
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393780 |
Berentsen, Aleksander; Waller, Christopher |
Price level targeting and stabilization policy |
0022-2879 |
Journal of money, credit and banking |
Publication: JournalArticle (Originalarbeit in einer wissenschaftlichen Zeitschrift) |
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Cooperations () |
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ID |
Kreditinhaber |
Kooperationspartner |
Institution |
Laufzeit - von |
Laufzeit - bis |
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393868 |
Berentsen, Aleksander |
Waller, Christopher |
University of Notre Dame; St. Louis Fed |
01.01.2009 |
31.12.2010 |
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03/05/2024
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