This article provides a macro-foundation for why the specific value of 2% is a valid inflation target. The approach … is tested for the U.S. (for aggregates M1, M1RS, and M1S) over the period 1959-2007. Setting the inflation target rate …

therefore analyse this policy strategy through a model of inflation target zone, with a central value and symmetric upper and …

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. …

the inflation target of eighttenths the size of the drop in the real natural rate of interest is warranted. Absent an … increase in the inflation target, and assuming the effective lower bound prevents the European Central Bank from implementing …