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Eurilton Araújo and Débora Gouveia
''Calvo-type rules and the forward-looking behavior of inflation targeting central banks''
( 2013, Vol. 33 No.3 )
We estimate small open economy models in which inflation targeting central banks respond to a discounted infinite sum of expected inflation and output gaps (Calvo-type rules). The results support Calvo-type rules for Australia and Canada, and suggest longer targeting horizons for inflation compared with output gaps.
Keywords: Calvo-type rules, Bayesian estimation, inflation targeting
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
Manuscript Received : Jul 03 2013 Manuscript Accepted : Aug 13 2013

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