Although the average inflation rate of developed countries in the postwar period has been greater than zero, much of … the extensive literature on monetary policy has employed models that assume zero steady-state inflation. In comparing four … omitting trend inflation, that is, positive steady-state inflation. We compare certain population characteristics and the IRFs …

. “Rents” in the CPI have jumped up by as much as 35% in certain quarters, hugely overestimating the true inflation. This … vitiates any use of the core CPI for monetary policy including inflation targeting. This will-o’-wisp that the RBI chased, had …

Observed inflation targets around the industrial world are concentrated at two percent per year. This chapter … investigates the extent to which the observed magnitudes of inflation targets are consistent with the optimal rate of inflation … of inflation ranges from minus the real rate of interest to numbers insignificantly above zero. Furthermore, we argue …

Neo-Fisherites argue that conventional central banking wisdom has inflation control wrong, in that the way to increase … (reduce) inflation is to increase (reduce) the central bank’s nominal interest rate target …

This paper studies Tobin's proposition that inflation quot;greasesquot; the wheels of the labor market. The analysis is … inflation is determined by a benevolent government that maximizes the households' welfare. The Simulated Method of Moments is … wages are downwardly rigid and that the optimal level of grease inflation for the U.S. economy is about 1.2 percent per year …

The past two decades have witnessed a worldwide move by emerging markets to adopt explicit or implicit inflation … that is heavily influenced by a quasi inflation target? And how has the monetary regime been affected by the gradual … inflation vis-à-vis narrowing the output gap. The central bank however was found to be in the “Dove” regime about half of our …

monetary authorities. With increased transparency under inflation targeting, such evidence suggests that the public perceives …

The last decade has seen a worldwide move by emerging markets to adopt explicit or implicit inflation targeting regimes … influenced by a quasi inflation target? To address this point, we investigate monetary policy regime change in India using a … these regimes, the central bank reveals a greater relative (though not absolute) weight on controlling inflation vis …

level of inflation, to the exclusion of other important objectives such as employment generation, increasing investment or … reducing poverty, despite the widespread evidence that moderate levels of inflation have few or no costs. Some have even … adopted formal "inflation targeting", an approach which commits the central bank to hitting a fairly rigid inflation target …

central bank's inflation response necessary to rule out the possibility of self-fulfilling inflation expectations. This paper … their inputs (i.e. Markov-Switching) then inflation targeting interest rate rules are often found to result in indeterminacy … rule can alleviate this indeterminacy and anchor inflation expectations. Whether the money growth target should be a …