monetary targeted variable to have an impact on inflation. We apply a rather general framework to the Romanian experience with … MT in the period 1999-2005. We find that during this period Romania's MT regime can be characterised by a concern for …

the Generalized Dynamic Factor model to develop a set of core inflation indicators that, combining national data with area …

credibility a pegged exchange rate regime yields a lower loss compared to an inflation targeting policy, even if this policy … for a policy-maker to adopt inflation targeting over a strict exchange rate targeting regime. Full credibility is not a … precondition, but exposure to foreign and financial shocks and high steady state inflation make joining the EMU relatively more …

This paper studies optimal discretionary policy with parameter uncertainty about inflation inertia. Optimal policy … in the presence of uncertainty about inflation inertia, depending on the form of the central bank’s objective function …. Moreover, in the cases where optimal policy is not certainty equivalent, we find that inflation returns slightly more gradually …