impact of the zero bound on the effectiveness of interest rate policy in Japan in terms of stabilizing output and inflation …

United States during the 1990s. Proponents of this approach recommend that, when inflation is moderate but still above the … long-run objective, the central bank should not move immediately to fight inflation, but rather wait for exogenous … circumstances — such as favourable supply shocks and unforeseen recessions — to deliver the desired reduction in inflation. While …

inflation rates as low as 2%. The effects of the constraint are, however, non-linear with respect to the inflation target and … variability of output increases significantly and that of inflation also rises somewhat. Also, we show that the asymmetry of the … short of potential with lower inflation targets. …

We investigate the extent to which inflation targeting helps anchor long-run inflation expectations by comparing the … behaviour of daily bond yield data in the United Kingdom and Sweden—both inflation targeters—to that in the United States, a non-inflation …-targeter. Using the difference between far-ahead forward rates on nominal and inflation-indexed bonds as a measure of compensation for …

-2001 had an important impact on inflation divergence within the EMU and in particular the surge in Ireland’s inflation to over … contribute to inflation convergence and in particular to a fall in Irish inflation? Fortunately for us, the theory has passed the … test with flying colours. Irish inflation stopped dead in its tracks: consumer prices were unchanged between May and …

In this paper, we formulate a statistical model of inflation that combines data on survey expectations and the … inflation target set by central banks.. Our model produces inflation forecasts that are aligned with survey expectations … the inflation target set by the monetary authority to examine the effectiveness of monetary policy in forming inflation …

We survey recent literature comparing inflation targeting (IT) and price-level targeting (PT) as macroeconomic … conclusion that PT improves the inflation-output volatility trade-off in New Keynesian models is reasonably robust to these …

The paper provides an empirical analysis of inflation persistence in one of inflation targeting countries, the Czech …, display smaller inflation persistence than durables and processed goods. Inflation seems to be somewhat less persistent after … the adoption of inflation targeting in 1998. There is also evidence for aggregation bias, that is, aggregate inflation is …