Monetary developments of recent decades began with much promise with inflation targeting by independent central banks …

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 …

adamant about preventing a rise in inflation? The large fiscal imbalance brings about inflationary pressures, triggering a … spiral of higher inflation, output contraction, and further debt accumulation. A coordinated commitment to inflate away the …

-side effects into account, we get more persistent inflation and output reactions.We also show that the dichotomy does not hold for … discretionary monetary policy, the fiscal policy regime affects the size of the inflation bias.We also show that commitment to an … optimal monetary policy not only corrects the inflation bias but also increases the persistence of output reactions …

the effectiveness of fiscal policy stimulus measures in a credit crisis. The paper explores alternative scenarios which … restricted by the zero bound and will consequently not accommodate a fiscal stimulus. We also compare our results to other recent …

An increasing number of countries have adopted inflation targeting since New Zealand first adopted this framework in … early 1990. Currently there are 21 countries using inflation targeting in every continent of the world. This paper discusses … the characteristics of these countries and how the adoption of inflation targeting has affected their economic performance …

conducts monetary policy, highlighting the BSP's shift to inflation targeting as its monetary policy framework and the issues …