This paper provides a review of the concept of core inflation and evaluates the performance of several proposed … measures. We first consider the rationale of a central bank in setting its inflation goal in terms of a selected rate of … consumer price growth and the use of a core inflation measure as a means of achieving this long-term policy objective. We then …

In the paper we have investigated to what extent the behaviour of CPI inflation depends on changes in domestic economic … price indices respond to exchange rate movements and/or foreign inflation. The impact of exchange rate is most substantial …

This paper looks back at 20 years of inflation targeting (IT) in the world, reviewing previous findings and reporting … broadly, comparing output and inflation volatility under IT to volatility observed in non-IT experiences. Three, it surveys …

This paper analyzes the performance of central banks in 27 inflation targeting countries by examining their success in … achieving their explicit inflation targets. For this purpose, we decompose the inflation gap, the difference between actual … inflation and inflation target, into predictable and unpredictable components. We argue that the central banks are successful if …

In this paper we analyze whether inflation targeting is feasible in Poland. There are at least three prerequisites for … successful inflation targeting: 1) central bank independence, 2) a high degree of central bank accountability, transparency, and … communication to the public, and 3) a predictable and stable relationship between inflation and the instruments of monetary policy …

We document that inflation risk in the U.S. varies significantly over time and is often asymmetric. To analyze the … direction of inflation risks. We perform counterfactual analyses using a quantitative general equilibrium model to evaluate the … implications of incorporating real-time estimates of the balance of inflation risks into monetary policy communications and …

estate, as well as the costs of public goods to develop alternative inflation measures in Germany since the introduction of … the euro. Real economic growth as well as median wage developments are reexamined in light of the alternative inflation …

This paper studies monetary policy rules in a small open economy with Inflation Targeting, incomplete pass-through and …

In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize … is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting … headline inflation, assigns zero weight to import prices. …

persistence of U.S. inflation. We evaluate these features by comparing the out-of-sample forecast performance of two … errors depends on the level of inflation. The results of the comparison show that the parametric quantile forecasts are at … least as accurate as the semi-parametric QAR model, in particular for the core inflation measures. This leads us to conclude …