half of the IS-LM model and replaces it with a rule for setting the interest rate as a function of inflation and the output … mismatch. The modified model is a dynamic system in output and inflation, with a unique stable path that behaves very much like …

Using survey data of inflation expectations across a 36 developed and developing countries, this paper examines whether … the adoption of inflation targeting has helped to anchor inflation expectations. We examine the response of inflation … expectations following a shock to inflation, inflation expectations, and oil prices. For the 13 countries that adopted inflation …

financial policy and analysis covering four areas: the emergence and taming of the great inflation, developments in US external …

hitting the zero bound affects the target inflation rate of the other country. The direction of the effect depends on whether … interest-rate rules. Our finding is that targeting the price level yields higher welfare than targeting the inflation rate, and …