Optimal Money Growth Rate Based on Dynamic Inflation Rate

A dynamic model for public expected inflation rate adjusting was established under asymmetric information.On this basis an optimal control model of inflation expectations was built,its analytical solution was presented and the meaning was described.Research results show that whether the open loop or closed loop strategy would be taken,the monetary growth must be in the reasonable range of optimal control law path,in order to control inflation and manage inflation expectations effectively,and make the macro economic develop fast and steadyly.