that fix exchange rates and those that target inflation. Inflation targeting is a more durable policy; no country has yet … been forced to abandon an inflation target, while many have abandoned fixed exchange rates. Indeed, even though inflation … targeting began only in 1990, the duration of inflation targeting regimes is at least as long as, or longer than all alternative …

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

The paper provides an empirical analysis of inflation persistence in one of inflation targeting countries, the Czech …, display smaller inflation persistence than durables and processed goods. Inflation seems to be somewhat less persistent after … the adoption of inflation targeting in 1998. There is also evidence for aggregation bias, that is, aggregate inflation is …

narrowed ahead of inflation divergence. Cross-country real interest rankings would then assume a negative correlation with the … corresponding inflation rankings. The paper argues that on theoretical grounds, a perverse correlation between real interest rates … and inflation can be predicted for `old EMS' conditions. Empirical evidence supports this prediction while failing to …

Several industrialised countries have had a similar inflation experience in the past 30 years, with inflation high and … volatile in the 1970s and the 1980s but low and stable in the most recent period. We explore the dynamics of inflation in these … countries via a time-varying factor model. This statistical model is used to describe movements in inflation that are …

Extending recent theoretical contributions on sources of inflation inertia, we argue that monetary policy uncertainty …

. Whereas our methodology is general, we focus on an extended macro-model with unobservable processes for the inflation target … inflation target dominates the variation in the 'level factor' whereas monetary policy shocks dominate the variation in the …

We survey recent literature comparing inflation targeting (IT) and price-level targeting (PT) as macroeconomic … conclusion that PT improves the inflation-output volatility trade-off in New Keynesian models is reasonably robust to these …