order generator mechanism for cost pressure and inflation. In this working paper the basis and fundamentals of Shannon …

probabilities is estimated for Morocco and Tunisia to provide important information concerning the mechanisms underlying inflation … progressively opt for greater exchange rate flexibility as well as a monetary policy based on inflation targeting rather than … policies are reviewed and analyzed. Second, the theoretical sources of inflation (cost push and demand pull factors as well as …

stance, before and after its adoption of the inflation targeting framework, as revealed by its interest rate setting behavior … inflation by and large through its key policy rate, though it appears to be accommodative with respect to the output gap. In …

inflation declines smoothly over time whilst interest rates are volatile. We capture this by assuming that expectations are …

This paper proposes a novel Maximum Likelihood (ML) strategy to estimate Euler equations implied by dynamic stochastic … theories. The strategy exploits rational expectations cross-equation restrictions, but circumvents the problem of multiple … endogenous variable of the Euler equation. The paper then contrasts the proposed strategy to an alternative, widely employed …

output gap and inflation, but also on the relative weight the central bank allocates to stabilizing output in the traded …

the widely held interpretation of the ECB as an inflation targeter—and a rather soft one, too—it is argued that the key … and inflation persistence that owes to the ECB’s failure to internalize the euro area’s fiscal regime. This raises the … question as to whether inflation targeting would have led to better results, or could do so in future. …