a rationale for the practice of inflation zone targeting. We show that the presence of either zone-quadratic preferences … or a zone-linear relationship between inflation and economic activity provides strong incentives to deviate from … structure and relative preference towards economic stability in determining the width of the implied targeted inflation zone …

and measure the convergence of inflation expectations as well as the impact of credible targets in central banking. In … addition, we evaluate the idiosyncratic variables of our participants on the inflation formation process. The analysis reveals … five results: First, we find evidence that long-term inflation expectations are firmly anchored to a credible target …

disagreement between actual and perceived feedback parameters. The central bank can achieve low average inflation, but its ability …

This paper analyzes the time-varying credibility of the Fed's inflation target in an empirical macro model with … asymmetric information, where the public has to learn about the actual inflation target from the Fed's interest rate policy. To …-term inflation expectations of professionals with the perceived inflation target. …

We analyze the impact of price stability-oriented monetary strategies (inflation targeting — IT — and constraining … exchange rate arrangements) on inflation persistence using a time-varying coefficients framework in a panel of 68 countries … (1993–2013). We show that explicit IT has a stronger effect on taming inflation persistence than implicit IT and is …

We develop a model that can explain the evolution of trend inflation in the United States in the three decades before … inflation arises endogenously and has these determinants: the strength with which the central bank responds to inflation, the … degree of uncertainty about monetary policy perceived by the private sector, and, if it exists, the inflation target. Given …

Expectations of firms and households about the future trajectory of inflation tend to influence their current … investment and consumption/saving decisions, and the price and wage-setting behaviour. By firmly anchoring inflation expectations … inferior macroeconomic outcome of lower growth and higher inflation. Using bias-adjusted survey data on household inflation …

We investigate the regime-dependent and time-varying behavior of inflation expectations and the uncertainties of … causality tests. Results suggest state-dependent behavior of both the level and the uncertainty of inflation expectations … exchange rate is a significant determinant of inflation expectations. Threshold model estimations and causality test results …

long run Phillips curve recorded -0.75 in Sweden and -0.23 in the United States. While the average inflation rate in the … United States was very close to its targeted level, the average inflation rate in Sweden was 0.6 per- centage points below … its targeted level over the sample period. The deviation of inflation rate from its targeted level in Sweden resulted in …