589 - Achieving price stability in the euro zone: Monetary or inflation targeting?

Wetenschappelijke publicatie
Date 1 July 1999

In this paper a small econometric model with model-consistent expectations is adopted for the euro zone to study monetary and inflation targeting. Similation results show that the 'costs' in terms of inflation and economic growth volatility are by and large lowest in case of inflation targeting. Some attention is finally drawn to asymmetric shocks. Keywords: Monetary targeting, inflation targeting, euro zone JELCodes: C32, E40, E52