01906cas a2200277 a 4500 AALejournalIMF006256 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451962444 1018-5941 BD-DhAAL BD-DhAAL Clinton, Kevin. A Model for Full-Fledged Inflation Targeting and Application to Ghana / Kevin Clinton, Jihad Dagher, Ondrej Kamenik, Douglas Laxton. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (30 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 A model in which monetary policy pursues full-fledged inflation targeting adapts well to Ghana. Model features include: endogenous policy credibility; non-linearities in the inflation process; and a policy loss function that aims to minimize the variability of output and the interest rate, as well as deviations of inflation from the long-term low-inflation target. The optimal approach from initial high inflation to the ultimate target is gradual; and transitional inflation-reduction objectives are flexible. Over time, as policy earns credibility, expectations of inflation converge towards the long-run target, the output-inflation variability tradeoff improves, and optimal policy responses to shocks moderate. Mode of access: Internet Dagher, Jihad. Kamenik, Ondrej. Laxton, Douglas. IMF Working Papers; Working Paper ; No. 2010/025 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/025/001.2010.issue-025-en.xml IMF e-Library