Now showing items 1-7 of 7

    • Inflation and Price Level Targeting in a New Keynesian Model 

      Chadha, Jagjit S.; Nolan, Charles (2004-06-16)
      In a New Keynesian macroeconomic model under credible commitment, price level targeting dominates inflation targeting. But with sufficient inflation aversion the inflation targeting central bank can produce quantitatively ...
    • Inflation Targeting, Transparency and Interest Rate Volatility: Ditching 'Monetary Mystique' in the UK 

      Nolan, Charles; Chadha, Jagjit S. (2004-06-16)
      Monetary authorities often seem reluctant to discuss the conduct of monetary policy. There is a concern that greater openness in monetary policy-making may lead to volatility in financial markets, and specifically in ...
    • On the Interaction of Monetary and Fiscal Policy 

      Chadha, Jagjit S.; Nolan, Charles (2004-06-16)
      In this paper we review some fundamental issues that have been identified by macroeconomists in discussing the co-ordination of monetary and fiscal policy. As Sargent and Wallace (1981) graphically illustrated, the ...
    • Optimal Simple Rules for the Conduct of Monetary and Fiscal Policy 

      Chadha, Jagjit S.; Nolan, Charles (2004-06-16)
      Optimal Simple Rules for the Conduct of Monetary and Fiscal Policy
    • Output, Inflation and the New Keynesian Phillips Curve 

      Chadha, Jagjit S.; Nolan, Charles (2004-06-16)
      Explicit modelling of factor markets clarifies two fundamental aspects of the New Keynesian Phillips Curve (NKPC). First, we clarify the relationship between output and marginal cost. Second, for the NKPC in inflation-output ...
    • Productivity and Preferences in a Small Open Economy 

      Chadha, Jagjit S.; Janssen, N.; Nolan, Charles (2004-06-16)
      Following Hall (1997) it is increasingly common to incorporate preference, as well as productivity, perturbations in calibrated general equilibrium models. We assess the performance of a small open economy stochastic ...
    • Supply Shocks and the "Natural Rate of Interest": an Exploration 

      Chadha, Jagjit S.; Nolan, Charles (2004-06-16)
      We develop two variants of an open economy general equilibrium model employing Blanchard-Yaari life overlapping generations, which are shown to capture a number of important aspects of the UK economic cycle. We analyse the ...