game. Reciprocity induces a positive inflation bias and nominal fluctuations in the monetary union. …

banker's preferences for inflation stabilization relative to output stabilization. Transparency enhances the central bank …'s accountability. The paper shows that transparency leads to a lower expected rate of inflation and less stabilization of supply shocks. …

facilitate credible, low-inflation policies depends critically on the political structure of the monetary union. Efficient …

economy may be affected by the present circumstances of low rates of inflation and low nominal interest rates. …

stable rates of inflation in many countries. Consequently, the main goal of this Paper is to offer an overview of the main … policy issues arising in a low inflation environment and their practical relevance so as to identify the main challenges … nominal wage or price rigidities? What does the low inflation environment imply about the relative importance and effects of …

at containing inflation and the deviation of output from potential within pre-specified bounds. We develop formal tools … this loss function under weak assumptions may be estimated from realizations for inflation and output gap data even in the … parameters with respect to the inflation and output objectives during the Greenspan period. We formally test for and reject the …

inflation and the difficulties of East European central banks in pursuing non-inflationary policies. The main obstacles are the …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation …

stability. These questions are: (1) what are the economic costs of inflation? (2) what part does monetary policy play in the … short- and medium-term evolution of inflation? (3) what are the most appropriate monetary policy strategies for fighting … inflation? …

This Paper compares the social efficiency of monetary targeting and inflation targeting when central banks may have … feasible. Under inflation targeting and monetary targeting, central banks may have an incentive to signal their private … information in order to influence the public's expectations about future inflation. We show that inflation targeting is superior …