Browsing Articles by Author "Pontiggia, Dario"
Now showing items 1-3 of 3
-
Commitment policy and optimal positive long-run inflation
Pontiggia, Dario (2008)This paper studies different types of commitment policy in an economy where the deterministic steady state is inefficient. We show how a policy suggested by the approach of policy design entails positive long-run inflation, ...
-
Inflation persistence and optimal positive long-run inflation
Pontiggia, Dario (2007)Within New Keynesian economics, the optimality of a monetary policy that aims at zero inflation is surprisingly robust. Optimal monetary policy has this character despite the inefficiency of the nonstochastic steady state ...
-
Optimal long-run inflation and the New Keynesian model
Pontiggia, Dario (Elsevier, 2012-08)Central banks typically have a long-run inflation target that is modestly positive. However, the standard New Keynesian framework prescribes that zero inflation is the optimal longrun target. In this paper, we show that ...