A model of inflation targeting in an ope
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Jay H. Levin
📂
Article
📅
2004
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John Wiley and Sons
🌐
English
⚖ 186 KB
## Abstract This paper develops a model of inflation targeting in a small open economy under floating exchange rates. The central bank follows a simple Taylor rule to achieve a target inflation rate, and the inflation process itself is determined by an expectations augmented Phillips curve mechanis