achieve the inflation objective, while other instruments (minimum reserve requirements and macro prudential control) should be …

, and Slovakia) using GARCH and TARCH models between 1999 and 2006. Despite these countries adopted inflation targeting …

stability. To contain domestic inflation these central banks absorb rather then provide liquidity in their regular monetary … policy operations. Based on an augmented Barro-Gordon framework we show that inflation targeting within an environment of … implementing sterilization costs into the central bank’s objective function the inflation bias increases. …

In this paper we analyze flexible inflation targeting and nominal income targeting as two different monetary strategies … in a simple dynamic macromodel. Furthermore we analyze inflation targeting in a two-period time-lag version of the model … is a significant difference between the two different targeting regimes. Under inflation targeting the policy makers face …

In a standard New Keynesian model, a myopic central bank concerned with stabilizing inflation and changes in the output … stabilizing output gap changes, the central bank imparts inertia into output and inflation that is absent under pure discretion … social outcomes if it focuses on inflation and changes in the output gap than are achieved under inflation targeting. …

bargaining give the same outcomes as uncoordinated bargaining under inflation targeting. Under monetary union wage leadership for …

Keynesian model we show that, if households have hyperbolic discounting, small positive rates of inflation can be optimal. In … our baseline calibration, the optimal rate of inflation is 2.1% and remains positive across a wide range of calibrations. …

Many inflation targeting central banks are facing calls to expand their list of policy goals. I discuss how recent …

compares price inflation before the crisis with the necessary and actual price cuts that have taken place since the outbreak of … the crisis, predicting a decade of stagnation for the south and inflation for the north. Keynesian demand policy is …

repression in domestic interest rates—to avoid an avalanche of foreign capital inflows that would threaten inflation and asset …