Inflation variability between central bank's preferences and the structure of the economy: A note

Osama D. Sweidan

doi:10.1016/j.econmod.2010.06.008

Inflation variability between central bank's preferences and the structure of the economy: A note

Osama D. Sweidan

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

The current paper seeks to build a theoretical explanation to understand why many central banks failed to reduce inflation variability despite having the desire. The result proves that central bank's preferences are a necessary condition but not sufficient to guarantee lower inflation variability. The structure of the economy and the types of the shocks are significant factors.

Original language	English
Pages (from-to)	630-636
Number of pages	7
Journal	Economic Modelling
Volume	28
Issue number	1-2
DOIs	https://doi.org/10.1016/j.econmod.2010.06.008
Publication status	Published - Jan 2011
Externally published	Yes

Keywords

Asymmetric loss function
Central banks
Inflation variability
Quadratic loss function

ASJC Scopus subject areas

Economics and Econometrics

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10.1016/j.econmod.2010.06.008

Cite this

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title = "Inflation variability between central bank's preferences and the structure of the economy: A note",

abstract = "The current paper seeks to build a theoretical explanation to understand why many central banks failed to reduce inflation variability despite having the desire. The result proves that central bank's preferences are a necessary condition but not sufficient to guarantee lower inflation variability. The structure of the economy and the types of the shocks are significant factors.",

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KW - Asymmetric loss function

KW - Central banks

KW - Inflation variability

KW - Quadratic loss function

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Inflation variability between central bank's preferences and the structure of the economy: A note

Abstract

Keywords

ASJC Scopus subject areas

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