Over the last decade, many central banks have adopted policies known as inflation targeting. If intermediate … to the macroeconomic implications of inflation targeting. Unfortunately, the standard aggregate demand–aggregate supply … that can be used to teach intermediate macroeconomics students about inflation targeting. …

Inflation targeting is a statement about the objective of central bank policy and not about operating procedures. Its … structure and monetary transmission mechanism, the implementation of inflation targeting must be country specific. Instability … over time in the transmission mechanism also implies that inflation targeting strategies must evolve to avoid the fate of …

inflation-targeting countries during the 1990s. In this paper, we show that conventional monetary conditions indices are … potentially mis-specified. Under a regime of strict inflation targeting, conventional MCIs are unreliable indicator variables or … limitations of a standard MCI under strict inflation targeting. The policymaker can circumvent these limitations by redefining the …

The paper shows that the "monetary policy rules and inflation targeting" literature and the "endogenous money …