policy impacts inflation and real economic developments in China. The results indicate that the conduct of monetary policy in … aims to hit an inflation target by simply controlling the target interest rate. First, China’s monetary policy toolkit is …

. This was a period of very low inflation. The rate of growth in the aggregate price level was occasionally very close to … inflation. The declining prices cannot, however, be explained by lack of demand or any generalized deflationary tendencies … develops a new method for looking at the composition of inflation and illustrating how relative price dynamics interact with …

for the conduct of monetary policy, namely expected inflation and inflation risk premia. We solve the model using a third … hypothesis and the business-cycle behaviour of nominal interest rates in US data. We find that inflation risk premia are very … interest rates from index-linked bonds as a proxy for inflation expectations. Moreover, for short maturities current inflation …

optimise. Under discretionary monetary policy the size of the inflation bias depends on the fiscal policy regime. Using the … with the alternative fiscal policy rules, and inflation and output persistence reflects the economic data. With the deficit …

-coordinated optimal fiscal policy rule government spending should react counter cyclically to the local output gap and inflation, while …

contrast, shocks to inflation and the debt ratio itself played in most cases only a minor role. However, the inflation shocks … were vital in initiating the public debt problems, as the increase in actual inflation, and particularly the persistence of … high inflation expectations in the 1980s, led to a prolonged period of high real interest rates. Learning the implications …