This paper investigates the implicit inflation targets of inflation targeting (IT) CBs (CBs). This allows us to analyze whether the actions of the IT CBs coincide with their announced targets. The implicit (perceived) inflation targets of IT CBs derived from the actions (policy interest rates)...

We investigate the credibility of inflation targeting (IT) central banks (CBs) by estimating perceived inflation targets of the financial markets. We calculate financial markets' beliefs about the inflation targets of 24 IT countries. Then, we analyze whether the financial markets' beliefs about...

This paper empirically investigates the impact of inflation targeting on inflation uncertainty. We implement PARCH and GARCH methodologies to model conditional variance of inflation. We also investigate the relationship between level and volatility of inflation to analyze the validity of the...

This paper theoretically investigates inflation targeting when there is asymmetric information between the Central Bank and the public. The main argument of this study is that the inflation target can be used as a signalling mechanism through which the private-sector learns about the private...