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9271 Results

The Welfare Implications of Inflation versus Price-Level Targeting in a Two-Sector, Small Open Economy

Staff Working Paper 2006-12 Eva Ortega, Nooman Rebei
The authors analyze the welfare implications of simple monetary policy rules in the context of an estimated model of a small open economy for Canada with traded and non-traded goods, and with sticky prices and wages.

The Federal Reserve's Dual Mandate: A Time-Varying Monetary Policy Priority Index for the United States

Staff Working Paper 2006-11 René Lalonde, Nicolas Parent
In the United States, the Federal Reserve has a dual mandate of promoting stable inflation and maximum employment. Since the Fed directly controls only one instrument - the federal funds rate - the authors argue that the Fed's priorities continuously alternate between inflation and economic activity.
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