We extend Ruge-Murcia (2003, 2004) to weigh inflation and output and show that empirical evidence supports an …

economies. The general findings for monetary policy are that, while it was costly to lower inflation (in terms of output and … inflation further from its already low level. While inflation was being lowered, in a number of cases central banks were also … evidence that these changes have helped in terms of better anchoring inflation expectations. At the same time there is no firm …

that delegation enables a wider class of economies to sustain zero inflation than would be able to do so in its absence. We … schemes, delegated policy enables zero inflation to prevail in economies in which it could not do so without delegated policy …

alternative monetary policy strategies. We start with the relationship between output and inflation and investigate the fit of the … reject the nominal contracting model in favor of the relative contracting model which induces more inflation persistence, we … in countries which transitioned out of a high inflation regime such as France and Italy. We close the model by estimating …