This paper takes up the issue of the flexibility of inflation targeting regimes, with the specific goal of determining … whether the monetary policy of the Bank of England, which has a formal inflation target, has been any less flexible than that … of the Federal Reserve, which does not have such a target. The empirical analysis uses the speed of inflation forecast …

Most emerging market central banks have adopted inflation targeting as their monetary policy system. The heart of … inflation targeting system is inflation expectations. The success of a central bank in achieving targets depends on to the … extent to which inflation expectations are formed by the announced targets. As the credibility of the central bank increases …

In this paper we systematically evaluate how central banks respond to inflation deviations from target. We present a … stylized New Keynesian model in which agents' inflation expectations are sensitive to inflation deviations from target. To (re …-)establish credibility, optimal monetary policy under discretion is shown to set higher interest rates today if average inflation exceeded …

This paper aims to contribute to a better understanding on how inflation targets are set. For this reason, we first … inflation targets are set; we then estimate the determinants of the level of inflation target in 19 inflation targeting … than as a point). Inflation targets are found to reflect macroeconomic fundamentals. Higher level as well as higher …

We analyse the interaction between private agents? uncertainty about inflation target and the central bank's data … uncertainty. In our model, private agents update their perceived inflation target and the central bank estimates unobservable … economic shocks as well as the perceived inflation target. Under those two uncertainties, the learning process of both private …

inflation and output, and that terminating QE may be contractionary or expansionary, depending on the state of the economy at …

After almost four decades of price stability, inflation has recently approached historical highs. Initially driven by … global energy and food price increases, the magnitude of the surge in inflation caught central banks and markets by surprise … monetary policy tightening, inflation upside risks are large. How can central banks restore control - and with it their own …

perform poorly when knowledge is imperfect. In particular, policies that fail to maintain tight control over inflation are … prone to episodes in which the public's expectations of inflation become uncoupled from the policy objective and stagflation … effective communication of a central bank's inflation objective and of continued vigilance against inflation in anchoring …

This paper proposes an ESTAR modeling framework to analyze the anchoring of inflation expectations. Anchoring criteria … are empirical estimates of a market implied inflation target as well as the strength of the anchor that holds expectations …

announcing a quantified inflation objective, other forms of communication, or by publishing central banks’ inflation and output … (economic) transparency, and given our findings that disagreement among inflation expectations in the general public is not …