Under a conventional policy rule, a central bank adjusts its policy rate linearly according to the gap between … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output …

The European Central Bank has assigned a special role to money in its two pillar strategy and has received much … bank's interest rate rule is based on a standard model of the monetary transmission process that underlies many … deviations of long-run money growth helps the central bank to overcome this bias. Our argument in favor of ECB-style cross …

The European Central Bank has assigned a special role to money in its two pillar strategy and has received much … criticism for this decision. The case against including money in the central bank's interest rate rule is based on a standard …

bank acts to bring inflation under control, price-setting firms revise their estimates of the degree of persistence. Such … is found to influence the likelihood that firms switch from backward-looking indexation to the central bank's targets. As …

-check for monetary policy. We identify an important source of monetary trends in form of persistent central bank misperceptions …

the possibility of persistent central bank misperceptions. Such misperceptions motivate the search for policies that … significant cross-check with monetary information, when the New-Keynesian model is the central bank's preferred model. The cross …-check is shown to be effective in offsetting persistent deviations of inflation due to central bank misperceptions. …