policy to inflation (the Taylor principle) is neither necessary nor sufficient for determinacy. The model generates inflation … variables' responses to shocks should focus on a single target – inflation. Rather than “divine coincidence,” the reason for the …

This paper asks whether inflation targeting improves economic performance, as measured by the behavior of inflation …, output, and interest rates. We compare seven OECD countries that adopted inflation targeting in the early 1990s to thirteen … regression to the mean. Once one controls for regression to the mean, there is no evidence that inflation targeting improves …

inflation targeting rule, with a target criterion that depends on the model specification. It shows which forecast horizons … should matter, and which variables besides inflation should be taken into account, for each specification. The likely … computed for the estimated model, and shown to correspond to a multi-stage inflation-forecast targeting procedure. The degree …

This paper outlines what inflation targeting involves for emerging market/transition countries and discusses the … advantages and disadvantages of this monetary policy strategy. The discussion suggests that although inflation targeting is not a …

This paper considers the performance of average inflation targeting (AIT) policy in a New Keynesian model with adaptive … inflation targeting policy. Policymakers can improve outcomes under AIT by (i) targeting a discounted average of inflation, or …

minimising the volatility of inflation and the output-gap and reducing the probability of falling into a liquidity trap. The …

' inflation variability aversion. Our results suggest that both countries that introduced inflation targeting, and non …Aggregate shocks that move output and inflation in opposite directions create a tradeoff between output and inflation … variability outcomes, revealing national central banker's relative weight on output and inflation variability in their preferences …

Previous analysis of the implementation of inflation targeting is extended to monetary policy responses to different …. The conditional inflation forecast is the natural intermediate target during inflation targeting … stabilization or smoothing all call for a more gradual adjustment of the conditional inflation forecast toward the inflation target …

The paper begins by tracing the origins of the case for inflation targeting in postwar US monetary history. It … describes five aspects of inflation targeting practiced implicitly by the Greenspan Fed. It argues that (1) low long run … its short run inflation target (3) strict inflation targeting can be regarded as effcient constrained countercyclical …

Price level targeting (without base drift) and inflation targeting (with base drift) are compared under commitment and … and thereby more employment variability than inflation targeting. Counter to this conventional wisdom, under discretion a … correspond to inflation targeting. A price level target thus appears to have more advantages than commonly acknowledged …