. Starting from the issues and concepts familiar from research and policy experience in the 1990s of inflation targeting - as …

conventional wisdom, it is found that price-level targeting leads to a better trade-off between inflation and output …-gap variability than inflation targeting, when the central bank acts under discretion. In some cases, price-level targeting under … dircretion results in the same equilibrium as inflation targeting under commitment. …

In this paper we investigate the problem of selecting an optimal horizon for inflation targeting in the United Kingdom …

The central bank's optimal reaction to foreign and domestic shocks is analyzed in an inflation targeting model allowing … that the interest rate response to foreign shocks is smaller when pass-through is low. Second, the inflation …

This paper demonstrates how a target for money growth can be beneficial for an inflation targeting central bank acting …

A central bank pursuing the policy of inflation targeting aims to keep inflation as close as possible to a pre …-announced value. But which 'inflation' should this be? Quarterly, annual, biennial? In theoretical models it is typically inflation … during one period. We analyze how changing the period over which the inflation rate is defined - i.e. changing central bank …

-level stability and low (including zero) inflation and the decisions about the price index, the quantitative target and the role of … a commitment to a simple instrument rule (like a Taylor rule), forecast targeting (like inflation-forecast targeting … against inflation-forecast targeting are scrutinized and found unconvincing. …

What are the implications of targeting different measures of inflation? We extend a basic theoretical framework of … optimal monetary policy under inflation targeting to include several components of CPI inflation ratio, and analyze the … implications of using different measures of inflation as target variable — core inflation, CPI excluding interest rates, and …

inflation directly with a one-period lag as well as a two-period lagged effect via the output gap. It turns out that even a … modest one-period inflation effect from monetary policy actions has substantial implications for monetary policy that also … seem to be a step towards increased realism. For instance, in models where the central bank only can affect inflation with …