I study the dynamic consequences of average inflation targeting in a tractable monetary model with sticky prices. I … demonstrate that in the case in which the central bank attaches a relatively high weight on the distant past, average inflation … targeting not only ensures local determinacy of equilibrium but is also capable of eradicating the liquidity trap problem …

We study the implications of the Fed’s new policy framework of average inflation targeting (AIT) and its ambiguous … communication. The central bank has the incentive to deviate from its announced AIT and implement inflation targeting ex post to … inflation as a result of time inconsistency. First, it is optimal for the central bank to announce different horizons depending …

inflation targeting policy framework in the studied countries. …

We propose a novel framework to gauge the credibility of central banks' commitment to an inflation-targeting regime … inflation targeting makes economic agents change their perception about central bank decisions. Specifically, using the Reserve … Bank of India's adoption of inflation targeting in 2015 as a laboratory, we apply two different approaches to estimate a …

We propose a novel framework to gauge the credibility of central banks’ commitment to an inflation-targeting regime … inflation targeting makes economic agents change their perception about central bank decisions. Specifically, using the Reserve … Bank of India’s adoption of inflation targeting in 2015 as a laboratory, we apply two different approaches to estimate a …

We examine the impact of inflation targeting on manufacturing firm performance for a panel of 30,993 firms in 46 … that inflation targeting increases firm growth and productivity in targeting countries compared to non-targeting ones. Our …

Small open economies traditionally do not consider exchange rates explicitly when targeting inflation. However, the … helped to reduce both output and inflation fluctuations from global shocks and improve welfare. While a higher degree of …