interest rate rule, raising the possibility of inefficient fluctuations due to the dependence of expectations on extraneous … combine forward looking expectations and predetermined variables. We consider a variety of specifications that incorporate … both lagged and expected inflation in the Phillips Curve, and both expected inflation and inertial elements in the policy …

interest rate rule, raising the possibility of inefficient fluctuations due to the dependence of expectations on extraneous … combine forward looking expectations and predetermined variables. We consider a variety of specifications that incorporate … both lagged and expected inflation in the Phillips Curve, and both expected inflation and inertial elements in the policy …

interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … expectations. We derive an interest rate rule and show empirically that it approximates the way the Bundesbank conducted monetary … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … expectations. We derive an interest rate rule and show empirically that it approximates the way the Bundesbank conducted monetary … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

As inflation rates in the United States decline, analysts are asking if there are economic reasons to hold the rates at … levels above zero. Previous studies of whether inflation greases the wheels of the labor market ignore inflation's potential … allows the benefits of inflation (downward wage flexibility) to be separated from disruptive uncertainty about inflation rate …

is derived from policy-makers' preferences about inflation outcomes, we first show that downside risks to price stability … future inflation can provide insurance against the materialisation of such upside risks. …

inflation within a certain band. We use stochastic simulations of a smallscale rational expectations model to contrast the … inflation and its target, and the gap between output and its potential. Under the opportunistic approach to disinflation a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output …