Domestic and international determinants of optimal inflation measure selection for rule-based monetary policy during an energy price shock
Budapest University of Economics and Business, Hungary
Semi-structural New Keynesian model with energy sector decomposition, asymmetric price dynamics, central bank credibility dynamics, credit market with lending spreads, and international spillovers via exchange rate and risk premium channels
asymmetric price adjustment with competition intensity parameter; marginal cost driven by output gap and real exchange rate
Table 2
CPI expectations targeting in CB reaction function