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? …

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 …

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 …

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

not improve welfare, and in some cases is not desirable as it impairs stabilization of current inflation and/or output … inflation forecasts on central bank actions, which induces the central bank to focus exclusively on price stability in …

inflation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable … loss function (corresponding to flexible inflation targeting) is discussed, including the index and level for the inflation … of credibility (private inflation expectations coinciding with the inflation target) are discussed. Credibility improves …

Eurosystem. The P* model implies that inflation is determined by the level of and changes in the "real money gap" (the deviation … indicator for future inflation. Nevertheless, the P* model does not seem to provide any rationale for either a Bundesbank …

objective of stabilising inflation around the inflation target and resource utilisation around a sustainable level, promoting a … challenges are best met by focusing monetary policy exclusively on stabilising inflation around the inflation target and resource …

of flexible inflation targeting (price stability and the highest sustainable employment), including keeping average … inflation over a longer period on target; (2) not adding household debt as a new (intermediate) target variable, in addition to … inflation and unemployment – not “leaning against the wind,” which is counterproductive, but leaving any problems with household …