environment, leading to real-time forecast improvements relative to other methods of density forecast combination, such as …

Inflation targeting is shown to imply inflation forecast targeting: the central bank's inflation forecast becomes an … explicit intermediate target. Inflation forecast targeting simplifies both implementation and monitoring of monetary policy …. The weight on output stabilization determines how quickly the inflation forecast is adjusted towards the inflation target …

approximating strict inflation-forecast targeting are likely to have undesirable properties. We also show that economies with more … general forecast-based policy rules are particularly susceptible to indeterminacy of rational expectations equilibria. We …

stabilization or smoothing all call for a more gradual adjustment of the conditional inflation forecast toward the inflation target …. The conditional inflation forecast is the natural intermediate target during inflation targeting …