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Price level targeting and the delegation issue in an open economy

✍ Scribed by Froyen, Richard T.; Guender, Alfred V.

Book ID: 122126222
Publisher: Elsevier Science
Year: 2014
Tongue: English
Weight: 336 KB
Volume: 122
Category: Article
ISSN: 0165-1765
DOI: 10.1016/j.econlet.2013.10.027

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## 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