Measuring the sacrifice ratio Some international evidence ♦

Measuring the sacrifice ratio Some international evidence ♦ (2003)

by Kai Leitemo , Ole Bjørn Røste

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Datum	Value	Source
TITLE	Measuring the sacrifice ratio Some international evidence ♦	SVM HeaderParse 0.2
AUTHOR NAME	Kai Leitemo	SVM HeaderParse 0.2
AUTHOR AFFIL	Norwegian School of Management (BI); and	SVM HeaderParse 0.2
AUTHOR NAME	Ole Bjørn Røste	SVM HeaderParse 0.2
AUTHOR AFFIL	; Norwegian University of Science and Technology; Corresponding author. Address: Department of Economics, Norwegian School of Management, PO	SVM HeaderParse 0.2
ABSTRACT	We estimate the output loss associated with deliberate disinflation – the sacrifice ratio – for six small open economies, through the simulation of estimated VAR models where the historical monetary policy has been identified. Compared to estimates of other studies, our estimated sacrifice ratios are quite low for Norway and Sweden, quite high for Canada and the Netherlands, and relatively precisely estimated. A low sacrifice ratio implies, ceteris paribus, that inflation can be stabilized within narrower bands for a given variability of output. Varying sacrifice ratios across inflation-targeting countries may suggest that the inflation-rate bandwidth should also vary.	SVM HeaderParse 0.2
YEAR	2003	SVM HeaderParse 0.2
CITATIONS	40 found	ParsCit 1.0