interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … 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 … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

disinflation under inflation targeting policies. The analysis is motivated by the disinflation performance of many inflation … episode price-setting firms’ expect inflation to be highly persistent and opt for backward-looking indexation. As the central … bank acts to bring inflation under control, price-setting firms revise their estimates of the degree of persistence. Such …

output or inflation as in the empirical “two-pillar” Phillips curves estimated in some recent contributions, it would be …-checking does not require direct effects of money on output or inflation. …

or inflation as in the empirical two-pillar Phillips curves estimated in some recent contributions, it would be optimal …-checking does not require direct effects of money on output or inflation. …

In the New-Keynesian model, optimal interest rate policy under uncertainty is formulated without reference to monetary … criticized for failing to explain common trends in money growth and inflation, and that therefore money should be used as a cross …-check is shown to be effective in offsetting persistent deviations of inflation due to central bank misperceptions. …

distribution of demand changes between real output and inflation, we have thus identified nominal GDP growth as the key final …