. Estimations document illusionary presence of extra variables, such as lagged interest rate, output gap growth, and inflation …

makers are allowed to weight differently positive and negative deviations of inflation and output from the target values … expansions of the same magnitude. This asymmetry is shown to induce an average inflation bias of 1.11% that appears to have … substantially contributed to the great inflation of the 1960s and 1970s …

examining how the optimal monetary response varies when altering the effects of the real exchange rate on output and inflation …

a case study the Chilean inflation targeting experience, we assess the role of the exchange rate in the determination of … the interest rate. We conclude that Chile has adopted what Svensson (1997) calls a gradual approach to targeting inflation … inflation or output deviate from its target. In this context, we find evidence that the monetary authorities also react to real …

In times of low-inflation, conventional monetary policy is perpetually exposed to the risk of being caught by the … this risk can be possibly circumvented by targeting a small but positive inflation rate - i.e., so-called the ââ …‚¬Ëœbuffer’ role of an inflation target. In this paper, based on the stylized framework of a central bank's linear-quadratic dynamic …

monetary regimes considered are: exchange rate peg, money peg, inflation targeting, nontradable inflation targeting, and a …. Rules with these targets are welfare superior to other monetary regimes, such as CPI inflation targeting or money peg. Our …