Stability Price Index : Pecularity of Modeling in Ukraine
This paper considers the theoretical and methodological foundations of modeling price index for central banks targeting that is the mean of preventing significant fluctuations in monetary policy which are the reason for many macroeconomic mistakes. In accordance with the model, the transition from the index of consumer prices to the index of stable prices when targeting inflation reduces the variance of output. The choice of the central banks around the world to use the stable prices index for the effective monitoring and targeting of inflation is an important factor in the context of achieving the highest degree of stability in economic activity.(original abstract)
- Aoki, K., Optimal monetary policy responses to relative price changes, “Journal of Monetary Economics”, No. 48, 2001.
- Faust, Jon, Henderson Dale, W., Is inflation targeting best-practice monetary policy?, “Federal Reserve Bank of St. Louis Review”, 86(4), pp. 117-43, July/August 2004.
- Mankiw, N. G., Reis, R., Sticky Information: A Model of Monetary Nonneutrality and Structural Slumps, “NBER Working Paper”, No. 8614, 2001.
- Phelps, E. S., Disinflation without Recession: Adaptive Guideposts and Monetary Policy, “Weltwirtschaftsliches Archiv”, No.114 (4), 1978.
- Romer, D., Advanced Macroeconomics. Second edition., McGraw-Hill, 2001.
- Svensson Lars, E. O., Flexible Inflation Targeting: Lessons from the Financial Crisis, speech at the workshop "Towards a New Framework for Monetary Policy? Lessons from the Crisis," organized by the De Nederlandsche Bank, Amsterdam, September 21, 2009. http://people.su.se/~leosven/papers/090921e.pdf.
- Svensson Lars, E. O., Monetary Policy, lecture at Stockholm School of Economics, November 9, 2009. http://people.su.se/~leosven/papers/Monetary%20Policy%20-%20SSE%200911.pdf.
- Wynne Mark, A., How Should Central Banks Define Price Stability?, http://www.dallasfed.org/institute/wpapers, 2008.