Affordable Access

Price-level and interest-rate targeting in a model with sticky prices

  • Economics


An examination of a standard sticky-price monetary model whose conditions are perturbed relative to the canonical real-business-cycle model by two varying distortions: marginal cost and the nominal rate of interest. The paper explores the implications of two monetary policies that are frequently advocated: (1) an inflation target and (2) an interest rate target.

There are no comments yet on this publication. Be the first to share your thoughts.