Forward interest rates have become popular indicators of inflation expectations. The usefulness of this indicator … depends on the relative volatility and the correlation of inflation expectations and expected real interest rates. This paper … expected real interest rate add to the inflation expectations is balanced by a tendency for expected real interest rates and …

ongoing, inflation uncertainty seems to play a large role. Finally, while modern finance theory prices bonds and other assets …

policy on output in an intertemporal Euler equation. We show that including a short-term interest rate and inflation in the … and inflation are difficult to interpret using a standard macroeconomic framework. A decomposition of the yield spread … inflation as predictors. We provide a possible structural interpretation of these results by allowing for time-varying risk …

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

pronounced increase of aggregate US producer price inflation. …

how central bank preferences (and thereby monetary policy) affect the relation between nominal interest rates, inflation … estimated by maximum likelihood on quarterly US data. The policy experiments include stronger inflation targeting, more active …

Asset price inflation presents central banks with a puzzle. I examine the case of Germany, 1925-7, when the Reichsbank …

Financial globalization has seen the emergence of a new monetary standard based on inflation targeting. At the same … constrain the independence of central banks to conduct monetary policy? We argue, and show empirically, that credible inflation … limited deviation was possible within the 'gold points'. On the other hand, the credibility of inflation targeting regime is …