Working Paper
In noise we trust? Optimal monetary policy with random targets
Cohen-Cole, Ethan; Cosmaciuc, Bogdan (2006)
We show that a monetary policy in which the central bank commits to a randomized inflation target allows for potentially faster-expectations convergence than with a fixed target. The randomized target achieves faster convergence in particular in transition environments: those demonstrating either particularly high or low inflation. ; Quantitative Analysis Unit Working Paper QAU07-1
Working Papers , Paper 06-14