inflationary expectations. The paper also shows that it is often the case that, when allowed to choose the precision of inflation …This paper develops a simple intertemporal model of inflation targets within a framework in which the public is … uncertain about the dependability of policymakers, and in which policymakers do not perfectly control inflation. The framework …

alleviated by adopting state-contingent inflation targets (to combat the monetary policy commitments problem) and shock …