The authors investigate the implications of house-price bubbles for the optimal inflation-target horizon using a …, given the distribution of shocks and inflation persistence over the past 25 years, the optimal target horizon for Canada … inception of the inflation-targeting regime. The authors' results also suggest that it may be appropriate to take a longer view …

rate as the real policy rate consistent with output at its potential level and inflation equal to target after the effects … rate below neutral will be required to maintain inflation sustainably at target. …

nominal policy interest rate and the CPI inflation rate decline during housing booms and rise as house prices fall. These … demonstrate that stronger policy responses to inflation amplify housing-market boom-bust cycles. Also, higher loan-to-value ratios … stability ; Inflation targets …

inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively …

are already high. By contrast, upward pressures on output (and perhaps also on inflation) should lead to decreases in …, responding to future inflation, rather than the current rate, does not generate significant welfare improvements. While some of … should lower rates when output or inflation is pushing upward is more specific to limited-participation models. This …