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- W3124231614 abstract "Does Ramsey optimal policy call for adjusting the inflation target by the size of the quality bias in measured inflation? We find that if it is nonhedonic (or sticker) prices that are sticky, the conventional view, according to which it is optimal to adjust the inflation target upward by the size of the quality bias, is misguided. Furthermore, we establish that quality improvement is crucial for the determination of the optimal inflation target even in the absence of quality bias. In this case, if nonhedonic prices are sticky, sticker prices should fall at the rate of quality growth." @default.
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- W3124231614 date "2012-05-01" @default.
- W3124231614 modified "2023-10-13" @default.
- W3124231614 title "On quality bias and inflation targets" @default.
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- W3124231614 doi "https://doi.org/10.1016/j.jmoneco.2012.02.002" @default.
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