This paper examines the impact of the monetary policy instrument, the repo rate, mainly on output gap and inflation … in assessing the impulse response functions (IRFs) of output gap and inflation rate to monetary policy shocks. The VAR … instrument, the repo rate, did not impact on inflation in South Africa over the sample period covered by the paper. …

. Monetary policy can therefore affect the real value of funds used to finance production. In this model, allowing for inflation … rates and to engineer some inflation; and the Taylor rule may implement allocations that have opposite cyclical properties …

the absence of entry. Specifically, a long-run positive (negative) rate of inflation is optimal when the benefit of … by the desired markup. Plausible preference specifications and parameter values justify a long-run inflation rate of two …

countries with low inflation, the raw relationship between average inflation and the growth rate of money is tenuous at best … elasticities implied by theories of Baumol-Tobin and Miller-Orr. Finally, the sample after 1990 shows considerably less inflation … variability, worsening the fit of a one-for-one relationship between money growth and inflation, and generates a fairly low …

a burst of inflation that devalues the existing nominal debt stock. The probability of this outcome places upward … pressure on inflation expectations and poses a substantial challenge to a central bank pursuing an inflation target. The … distribution of outcomes for the path of future inflation has a fat right tail, revealing that only a small set of outcomes imply …

uncertainty and can undermine the ability of monetary policy to control inflation and influence real economic activity in the …

-type interest-rate feedback rule and differs from usual specifications in that when inflation falls below a threshold, the central … principle in a neighborhood of the intended inflation target. Importantly, the effectiveness of the potential exit strategy …

We investigate the extent to which inflation expectations have been more firmly anchored in the United Kingdom …-a country with an explicit inflation target-than in the United States-a country with no such target-using the difference between … far-ahead forward rates on nominal and inflation-indexed bonds as a measure of compensation for expected inflation and …

This paper presents an empirical analysis of the determinants of inflation in the United States, Japan, the euro area … and the United Kingdom, focusing on the role of resource utilisation, inflation expectations, inflation persistence and … imported inflation. It also includes a cross-sectional analysis that focuses on inflation dynamics over episodes of persistent …