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. …

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 …

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

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 …

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. …

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 …

We document key features of the deepening economic relationship between Brazil and China. This is evident from sharply … international fora. Data presented show bilateral trade between Brazil and China surging after 2001 and China is now Brazil …’s largest export market while Brazil’s export share to the US has halved. The number of bilateral cooperation agreements between …