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| Eurilton Araújo and Débora Gouveia |
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| ''Calvo-type rules and the forward-looking behavior of inflation targeting central banks'' |
| ( 2013, Vol. 33 No.3 ) |
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| 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. |
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| Keywords: Calvo-type rules, Bayesian estimation, inflation targeting |
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
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| Manuscript Received : Jul 03 2013 | | Manuscript Accepted : Aug 13 2013 |
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