Inflation Persistence and Monetary Policy Design: An Overview

Levin, Andrew T.; Moessner, Richhild

doi:10.2139/ssrn.828965

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Inflation Persistence and Monetary Policy Design: An Overview

ECB Working Paper No. 539

29 Pages Posted: 10 Nov 2005

See all articles by Andrew T. Levin

Richhild Moessner

Bank for International Settlements (BIS)

Date Written: November 2005

Abstract

How monetary policy should be set optimally when the structure of the economy exhibits inflation persistence is an important question for policy makers. This paper provides an overview of the implications of inflation persistence for the design of monetary policy.

Keywords: inflation persistence, optimal monetary policy, uncertainty

JEL Classification: E52, E58

Suggested Citation: Suggested Citation

Levin, Andrew and Moessner, Richhild, Inflation Persistence and Monetary Policy Design: An Overview (November 2005). ECB Working Paper No. 539, Available at SSRN: https://ssrn.com/abstract=828965 or http://dx.doi.org/10.2139/ssrn.828965