Purpose - Inflation targeting has increasingly become a popular monetary framework since its first introduction in New … periods of economic turmoil remain controversial. Thus, this paper re-examines the treatment effect of inflation targeting on … in the fixed-model is employed for this investigation using a balanced panel data of 54 countries with 15 inflation-targeting …

Policy rules that are consistent with inflation targeting are examined in a small macroeconomic model of the US economy … implicit instrument rules, may be closer to actual operating procedures of inflation-targeting central banks. We find that … inflation forecasts are central for good policy rules under inflation targeting. Some simple instrument and targeting rules do …

This paper analyses the impact of central bank interven-tions in the inflation targeting regime. The results of …, inflation is lower. As a result of lower price growth, the need for a monetary policy response to an interest rate is also lower …

We study the implications of the Fed's new policy framework of average inflation targeting (AIT) and its ambiguous … communication. The central bank has the incentive to deviate from its announced AIT and implement inflation targeting ex post to … inflation as a result of time inconsistency. First, it is optimal for the central bank to announce different horizons depending …

policy with average inflation targeting and investigate the conditions for determinacy. A unique equilibrium rules out … sunspot shocks that can lead to self-fulfilling shocks for inflation expectations. We find limitations for the length of the …

This study revisits the exchange rate and interest rate differential relationship since Ghana adopted an inflation … macroeconomic instability, especially inflation which we conjecture fuels investment uncertainty and investment insensitivity to … targeting regime. Using macro-data spanning 2002 to 2019 for Ghana and the United States, we show the nonexistence of a …

evaluates alternatives to the Bank’s current inflation-targeting agreement, and recommends that the agreement continue in its … frontline economic science. Inflation targeting has served Canada well. The Bank of Canada has been successful, since 1991, in … alternatives to the current inflation targeting agreement include: (i) retaining the inflation targeting approach, but increasing …

This paper considers the performance of average inflation targeting (AIT) policy when there is imperfect knowledge … steady state with interest rates at the zero lower bound, AIT does not outperform standard inflation targeting policy … responds aggressively to below-target average inflation …

pass-through during the inflation targeting period in Brazil … for the exchange rate pass-through and for the volatility of shocks to inflation. Under the so-called “normal” regime, the … long-run pass-through to consumer prices inflation is estimated at near zero value, only 0.00057 percentage point given a 1 …

I study the dynamic consequences of average inflation targeting in a tractable monetary model with sticky prices. I … demonstrate that in the case in which the central bank attaches a relatively high weight on the distant past, average inflation … targeting not only ensures local determinacy of equilibrium but is also capable of eradicating the liquidity trap problem …