The role of the "Maximizing Output Growth Inflation Rate" in monetary policy

Dominique Pepin

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arXiv · 1403.6112

The role of the "Maximizing Output Growth Inflation Rate" in monetary policy

Dominique Pepin

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Abstract

The paper discusses the role of monetary policy when potential output depends on the inflation rate. If the intention of the central bank is to maximize actual output growth, then it has to be credibly committed to a strict inflation targeting rule, and to take the MOGIR (the Maximizing Output Growth Inflation Rate) as the target.

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Dominique Pepin. 2014-03-24. The role of the "Maximizing Output Growth Inflation Rate" in monetary policy. https://arxiv.org/abs/1403.6112

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