interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

model averaging in policy design. Interestingly, a simple difference rule with the same coefficients on inflation and output …

inflation and its target, and the gap between output and its potential. Under “the opportunistic approach to disinflation” a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output … stabilization when inflation is close to its target, allowing supply shocks and unforeseen fluctuations in aggregate demand to move …

. Deflation subsided by 2005. As soon as inflation appeared to stabilize near a rate of zero, the Bank of Japan rapidly reduced …

is derived from policy-makers' preferences about inflation outcomes, we first show that downside risks to price stability … future inflation can provide insurance against the materialisation of such upside risks. …

inflation and its target, and the gap between output and its potential. Under the opportunistic approach to disinflation a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output … stabilization when inflation is close to its target, allowing supply shocks and unforeseen fluctuations in aggregate demand to move …

policy, including local approximations to the mean, persistence, and volatility of inflation. We present diverse sources of … uncertainty that impinge on the posterior predictive density for inflation, including model uncertainty, policy drift, structural … shifts and other shocks. We use a recently developed minimum entropy method to bring outside information to bear on inflation …

inflation volatility to zero. (iii) The statistical Phillips Curve changes substantially with policy instruments and activist … inflation hence the aggregate price level appears “sticky” with respect to money shocks. (v) Discretion in monetary policy adds … current effective policy is only mildly activist and aims mostly to target inflation. …