inflation as one component of future real wages. This paper scrutinizes whether countries in CEE that officially announce an … inflation target are tempted to act time-inconsistently and switch from the announced inflation target to an exchange rate … target in order to sustain higher output via surprise inflation. If market participants discover the time-inconsistency, they …

In this paper I evaluate inflation targeting for ten countries. The evaluation is based on unconditional as well as … conditional measures of the variance of inflation around target. With strict inflation targeting, expectations of the future … Price Index (CPI) when calculating the inflation rate, I find that the null hypothesis can be rejected for six of ten …

We analyze empirical links between the perceived tail-risk of inflation, the policy rate, longer-term interest rates … always in reaction to Fed announcements; and, (v) our impulse responses demonstrate that odds of extreme inflation outcomes …

Since the 2001 recession, average core inflation has been below the Federal Reserve's 2% target. This deflationary bias … corrects the bias and brings inflation back on target. Adopting this asymmetric rule improves welfare and reduces the risk of …

This paper examines the long-run effects of supply shocks (such as oil shocks) on inflation in the United States. The … persistence of supply shocks in U.S. inflation fell considerably during the period of Volcker's disinflation (1979-1982). My … the behavior of inflation expectations-agents expected shocks to persist in the pre-Volcker period, but not in the post …

based on the changes in actual inflation rate do not perform very well in environments of chronic inflation. We design an … the central bank's ability to lower inflation expectations towards its inflation target via current interest rate … differs from the existing measures that are based on the deviation of inflation expectations from the inflation target. We …

gap coefficient is higher in the recessionary regime than in the normal one. The estimate of the inflation coefficient …

&R) approach and use annual forecasts of output growth and inflation to estimate monetary policy shocks. I complement the analysis …

monetary policy rule responding to inflation, the output gap, house prices and stock prices. We find some time variation in the … coefficients for house prices and stock prices but fairly stable coefficients over time for inflation and the output gap. Our …