Euroraum die Gefahr fiskalischer Dominanz, bei der eine künftige Bekämpfung der Inflation durch fiskalische Erwägungen … bonds, at its Council meeting in January. The purchases are intended to anchor the rate of inflation and inflation … fiscal dominance, implying that future control of inflation could be impeded by fiscal considerations. Moreover, asset …

In a recent paper, Atkeson and Kehoe (2004) demonstrated the lack of a robust empirical relationship between inflation … relationship by allowing for inflation and growth to have a nonlinear specification dependent on inflation levels. In particular …, we allow for the possibility that high inflation is negatively correlated with growth, while a positive relationship …

and debt. Mainstream economists have raised issues of excessive inflation, “crowding out” of private sector investment … rates and inflation, not to mention the private sector’s loss of a risk-free, interest-bearing alternative to cash. This is … inflation, exacerbate wealth disparity or have other harmful effects. These are serious problems and they need to be addressed …

inconsistency problem arising from the temptation to stimulate the economy with unexpected inflation. Although this dynamic … mechanism design problem seems complex, society can implement the optimal policy simply by legislating an inflation cap that … specifies the highest allowable inflation rate. The more severe the time inconsistency problem, the more tightly the cap …

, inflation in the euro area remains extremely weak. Furthermore, as the present Wochenbericht clearly demonstrates, the inflation …'s inflation target which, in turn, augments the risk of the euro area sliding into deflation. In June, the Central Bank introduced …

A key issue in the renewal of the inflation-control agreement is the question of the appropriate level of the inflation … financial crisis, the effective lower bound (ELB) is more likely to be binding in the future if inflation targets remain at 2 … per cent. This has led some to argue that the inflation target should be raised to reduce the incidence of ELB episodes …

In 1991, Canada became the second country to adopt an inflation target as a central pillar of its monetary policy … performance: (i) the simple, readily understood and consistently applied specification of the inflation target, which, since … agreement between the central bank and government, in which inflation control was recognized as a joint duty of both parties …