, and time-varying trend inflation using post-WWII U.S. data. The model embedding the stochastic target performs better in … policy aggressiveness and inflation gap persistence. …

inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions Although an … inflation target eliminates this inflation bias, it creates a conflict between monetary policy and discretionary fiscal policy …

This paper estimates regime-switching monetary policy rules featuring trend inflation using post-WWII US data. We find … evidence in favour of regime shifts and time-variation of the inflation target. We also find a drop in the inflation gap … upon a feedback mechanism running from the monetary policy stance to the inflation gap. Our results support the stochastic …

inflation changes, that is the Lucas critique applies, then inflation is not superexogenous for the parameters of the Taylor … the volatility of inflation (captured by a discrete heteroskedastic variance model of regime shifts) reduced by almost 50 … percent, we fail to reject the null that inflation is superexogenous to the parameters of the Taylor rule. This implies that …

-makers are allowed to weight differently positive and negative deviations of inflation and output from the target values. Reduced … expansions of the same magnitude. This asymmetry is shown to induce an average inflation bias of 1.11% that appears to have … substantially contributed to the great inflation of the 1960s and 1970s …

This paper demonstrates how a target for money growth can be beneficial for an inflation targeting central bank acting …

This paper studies monetary policy rules in a small open economy with Inflation Targeting, incomplete pass-through and …

conditions. The results support the theory of flexible inflation targeting under discretion for the United Kingdom. For New … the wind. The central banks of Canada, Sweden, and Australia have behaved in line with the theory of flexible inflation …In this paper, I investigate the monetary policy of five industrialized countries which have had explicit inflation …

, effective revenue ceilings induce an increase in deficit, debt and inflation. Under many scenarios, including recurrent adverse …