Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
967297 | Journal of Monetary Economics | 2006 | 34 Pages |
Abstract
It is shown that only under special conditions there are no gains from cooperation and moreover that the paths of the exchange rate and prices in the constrained-efficient solution depend on the kind of disturbance that affects the economy. Despite this result, simple targeting rules that involve only targets for the growth of output and for both domestic GDP and CPI inflation rates can replicate the cooperative allocation.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Gianluca Benigno, Pierpaolo Benigno,