This Paper argues that inflation-targeting central banks should announce explicit loss function with numerical relative … inflation targeting and eliminates some misunderstandings of the meaning of ‘flexible’ inflation targeting. Using time …

The paper analyses inflation targeting when two independent policy authorities (a central bank and a National … Government) have divergent preferences for the optimal policy mix. We demonstrate that the main advantage of inflation targeting …, as a policy regime, is that it represents a simple proxy for full coordination between policy authorities. Inflation …