Inflation targeting in open economies

“Monetary Policy Trade-Offs in an Estimated Open-Economy DSGE Model” (with Malin Adolfson and Stefan Laséen, Sveriges Riksbank, and Jesper Lindé, Federal Reserve Board), May 2012, PDFAbstract.

The line: We examine the transmission of shocks under optimal and other policies in Ramses, the Riksbank’s open-economy medium-sized DSGE model for forecasting and policy analysis.

“Optimal Monetary Policy in an Operational Medium-Sized DSGE Model” (with Malin Adolfson, Stefan Laséen, and Jesper Lindé, Sveriges Riksbank), July 2010, Journal of Money, Credit and Banking, forthcoming. PDFAbstractTechnical AppendixLonger June 2009 version.

The line: We show how to construct optimal policy simulation in Ramses, the Riksbank’s open-economy medium-sized DSGE model for forecasting and policy analysis.  Optimal policy under commitment fits Riksbank past policy better than simple instrument rule without policy shock.

“Current Account Dynamics and Monetary Policy” (with Andrea Ferrero, Federal Reserve Bank of New York, and Mark Gertler, New York University), September 2007, PDFAbstract

The line: For different scenarios for U.S.-relevant current-account adjustment in a two-country DSGE model, it is shown that the behavior of domestic variables such as inflation and output is quite sensitive to the monetary policy regime, whereas the behavior of international variables such as the current account and the real exchange rate is less so.

“Comment on Jeffrey Frankel, ‘Commodity Prices and Monetary Policy’,” in Campbell, John Y. (ed.), Asset Prices and Monetary Policy, forthcoming, PDF.

“Flexible Inflation Targeting: Principles and Possible Improvements,” seminar at Norges Bank (Bank of Norway), Oslo, on March 25, 2004 (shorter version presented at Conference on Monetary Policy, Norges Bank, March 26, 2004), overhead slides (73 KB).

An Independent Review of Monetary Policy and Institutions in Norway,” by Lars E.O. Svensson (chair) (Princeton University), Kjetil Houg (Alfred Berg), Haakon Solheim (Norwegian School of Management BI) and Erling Steigum (Norwegian School of Management BI), Norges Bank Watch 2002, Centre for Monetary Economics, Norwegian School of Management BI, September 2002.

“Monetary Policy and Real Stabilization,” September 2002, in Rethinking Stabilization Policy, A Symposium Sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming, August 29-31, 2002, 261-312, PDFAbstract.

Discussion of Calvo, Celasun and Kumhof, “A Theory of Rational Inflation Inertia,” IFM  Workshop, NBER Summer Institute, July 16, 2001, overhead slides (PDF, 45KB).

“Independent Review of the Operation of Monetary Policy in New Zealand: Report to the Minister of Finance,” February 2001

Discussion of Clarida, Gali and Gertler, “Optimal Monetary Policy in Open versus Closed Economies: An Integrated Approach,” American Economic Association Annual Meeting, January 5, 2001, overhead slides (PDF, 36 KB).

“Open-Economy Inflation Targeting,” Journal of International Economics 50 (2000) 155-183.

  • Revised and corrected Working Paper version, June 1998, PDF (0.7 MB). Abstract.
  • Revised and shortened Journal version, August 1998, PDF (0.4 MB). Abstract
  • Corrections.

“Inflationsmål i en öppen ekonomi: Strikt eller flexibelt inflationsmål?” (“Inflation Targeting in an Open Economy: Strict or Flexible Inflation Targeting?”), Ekonomisk Debatt 26(6) (1998) 431-439, PDF (0.1 MB).

“Inflation Targeting in an Open Economy: Strict or Flexible Inflation Targeting?” Public Lecture held at Victoria University of Wellington, New Zealand, November 18, 1997. Victoria Economic Commentaries 15-1 (March 1998), PDF (55 KB). Also available asRBNZ Discussion paper G97-8.