An Investigation of Output Variance Before and During Inflation Targeting
IMF Working Papers, December 1, 2001
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- An Investigation of Output Variance Before and During Inflation Targeting
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Bibliographic details
- Authors: Francisco d Nadal De Simone
- Published: December 1, 2001
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451875041.001
Summary and Main Findings
- Research question: Estimates whether conditional output variance changed in a sample of 12 countries following the generalized reduction in inflation variance in the 1990s.
- Principal finding: With the possible exception of Canada, there is no evidence of an increase in output variance.
- Country-specific outcomes reported:
- Canada: possible exception (implying potential increase in output variance).
- Korea: output variance has not changed.
- Singapore: output variance has not changed.
- Australia: output variance has fallen.
- New Zealand: output variance has fallen.
Context and Motivation
- Background: Since Taylor estimated a trade-off between inflation and output variance, a common view is that keeping inflation “too low and stable” may result in relatively larger output fluctuations.
- Trigger for study: Generalized reduction in inflation variance in the 1990s rekindled concerns about an inflation-output variance trade-off.
Scope and Approach
- Sample size: 12 countries.
- Study type: IMF Working Paper (Working Paper No. 2001/215).
- Length: 27 pages.
- Publication details:
- Author: Francisco d Nadal De Simone
- Date: December 1, 2001
- Volume: 2001
- Issue: 215
- DOI: https://doi.org/10.5089/9781451875041.001
- Stock No: WPIEA2152001
- ISBN: 9781451875041
- ISSN: 1018-5941
Subjects and Keywords (as provided)
- Subjects: Business cycles, Economic growth, Inflation, Inflation targeting, Monetary policy, Monetary policy frameworks, Potential output, Prices, Production
- Keywords: Australia and New Zealand, Business cycles, Inflation, inflation targeting, inflation targeting framework, inflation variance, inflation-targeting regime, Markov-switching, Monetary policy frameworks, output trade-off, output variance, output variance trade-off, Potential output, WP
IMF Working Paper No. 2001/215 — "An Investigation of Output Variance Before and During Inflation Targeting" by Francisco d Nadal De Simone (December 1, 2001).
Content in this bundle
- An Investigation of Output Variance Before and During Inflation Targeting - WP/01/215