The effect of discounting on policy choices in inflation targeting regimes

• 成果类型: Article
• 署名作者: Henry, SGB; Satchi, M; Vines, D
• 署名单位: University of Kent; University of Oxford; Australian National University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2006.01056.x
• 发表日期: 2006
• 页码: 266-282
• 关键词: optimal monetary-policy; ECONOMY

摘要

This article assesses the implications of discounting on a result derived by Bean (1998): that in a model of monetary policy where policy acts with a lag, the outcomes of monetary policy are very similar for a wide range of preferences of the monetary authority with respect to inflation and output stability. We show that when the authority discounts the future, outcomes become more sensitive to its preferences, and that it is important to take the discount rate into account when examining the question of how the authority's remit should be specified.