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Average is good enough : average-inflation targeting and the ELB / by Robert Amano, Stefano Gnocchi, Sylvain Leduc and Joel Wagner.FB3-5/2020-31E-PDF

"The Great Recession and current pandemic have focused attention on the constraint on nominal interest rates from the effective lower bound. This has renewed interest in monetary policies that embed makeup strategies, such as price-level or average-inflation targeting. This paper examines the properties of average-inflation targeting in a two-agent New Keynesian (TANK) model in which a fraction of firms have adaptive expectations. We examine the optimal degree of history dependence under average-inflation targeting and find it to be relatively short for business cycle shocks of standard magnitude and duration. In this case, we show that the properties of the economy are quantitatively similar to those under a price level target"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.889531&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleAverage is good enough : average-inflation targeting and the ELB / by Robert Amano, Stefano Gnocchi, Sylvain Leduc and Joel Wagner.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-31
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • Cover title.
  • "Last updated: July 16, 2020."
  • Includes bibliographical references (pages 19-20).
Publishing information
  • Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020.
  • ©2020
Author / Contributor
  • Amano, Robert A., author.
Description1 online resource (ii, 29 pages) : graphs.
Catalogue number
  • FB3-5/2020-31E-PDF
Subject terms
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