rate, fiscal activism can substantially outperform inflation targeting in the face of both demand shocks and technology … stabilizer and controls inflation, while monetary policy pegs the nominal interest rate. When evaluated through the lens of a …

This paper analyses the impact of central bank interven-tions in the inflation targeting regime. The results of …, inflation is lower. As a result of lower price growth, the need for a monetary policy response to an interest rate is also lower …

The theoretical foundation of inflation targeting was laid out by the Swedish economist Knut Wicksell (1851-1926) in … as the rule for monetary policy. Today, inflation targeting is considered the best-practice approach to monetary policy …, inflation targeting has recently been the subject of several objections. Most prominently, the focus on consumer price stability …

policy with average inflation targeting and investigate the conditions for determinacy. A unique equilibrium rules out … sunspot shocks that can lead to self-fulfilling shocks for inflation expectations. We find limitations for the length of the …

evaluates alternatives to the Bank’s current inflation-targeting agreement, and recommends that the agreement continue in its … frontline economic science. Inflation targeting has served Canada well. The Bank of Canada has been successful, since 1991, in … alternatives to the current inflation targeting agreement include: (i) retaining the inflation targeting approach, but increasing …

In his 2004 inflation targeting manifesto, Marvin Goodfriend described US monetary policy as implicit inflation … targeting and advocated explicit targeting. Summarizing the 1965-2000 US inflation experience, he highlighted the importance of …, no conflict arises between flexible inflation targeting and maintaining/accumulating credibility. Second, implicit …

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 …

adopted inflation targeting. This paper examines the potential for further improvements by refining the concept of inflation …The dramatic improvement in macroeconomic outcomes during the 1990s - stable, low inflation and high, stable growth … makes up for periods of above (below) target inflation with later periods of below (above) target inflation …