disentangle the effects, we study the predictability of all variables in a simple model of monetary policy: inflation, the output …

striking negative correlation between the evolution of the long-run coefficient on inflation in the monetary rule and the … evolution of the persistence and predictability of inflation relative to a trend component. Using a standard sticky-price model …, we show that a more aggressive policy stance towards inflation causes a decline in inflation predictability, providing a …

separate inclusion of a labor market in the model helps to anchor inflation even in a situation of adaptive expectations, a … positive output gap and inflation above target. The estimation results show that the adaptive learning model does a better job … and inflation far above the central bank target. …

data revision errors in GDP on the ex ante or conditional inflation-output-growth volatility trade-off and applies it to … volatility of inflation and output growth is explored by a simulation exercise. In general, the results obtained suggest that … focusing monetary policy on GDP growth instead on inflation may lead to an inefficient policy with both increased medium term …