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 …

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? …

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

We study the effects of Central Bank transparency on inflation and the output gap. We thus first identify a small … analytical model, which concludes that transparency affects the variability of inflation and output and not their average levels … explain however, about 50% of the variability in inflation. The relation between transparency and output volatility is less …

. Smaller Fed policy errors accounted for the fall in inflation volatility. Smaller supply shocks accounted for the fall in …

This Paper examines inflation indicators for the euro area by studying the relationship between inflation, output … information regarding future inflation. In contrast, the Eurosystem’s money-growth indicator (the difference between nominal money … future inflation, and no information beyond that contained in the output and real money gaps. The predictive performance of …

extent to which it is similar to inflation targeting as practiced by an increasing number of central banks. I examine the …