01674cas a2200241 a 4500 AALejournalIMF000880 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451848151 1018-5941 BD-DhAAL BD-DhAAL Jadresic, Esteban. Inflation Targeting and Output Stability / Esteban Jadresic. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (39 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper reexamines the effects of inflation targeting on output stability. It considers an economy with staggered price setting that is exposed to price shocks and where the policymaker cannot observe the current realizations of aggregate output and inflation. The paper shows that, if some price shocks can be anticipated, the effects of inflation targeting depend critically on the inflation indicator being targeted. Specifically, targeting headline inflation can severely destabilize output, while targeting inflation indicator of sticky prices may eliminate that problem and make the response of the output gap to aggregate shocks short-lived. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1999/061 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/061/001.1999.issue-061-en.xml IMF e-Library