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Inflation Targets as Focal Points

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  • Maria Demertzis
  • Nicola Viegi

Abstract

In a world characterised by noisy information and conflicting signals, no Central Bank is always able to affect private sector expectations. Based on Morris and Shin’s model, monetary policy then becomes an information game, in which individuals form their expectations based on all the information that is available to them (public and private). However individual […]

Suggested Citation

  • Maria Demertzis & Nicola Viegi, 2005. "Inflation Targets as Focal Points," Working Papers 002, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:002
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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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