interest rates by critically surveying theories about (a) optimal anticipated inflation, (b) optimal unanticipated inflation …

policy requires that inflation be stabilized at the union level. On the other hand, the relinquishment of an independent …

on a number of grounds which we evaluate in this paper. We show that observed inflation persistence in U.S. time series … is consistent with the absence of structural inflation stickiness as is the case in the benchmark NNS economy. We …

Standard discussions of flexible inflation targeting as an optimal monetary policy abstract completely from the … consequences of monetary policy for the government budget. But at least some of the countries now adopting inflation targeting have … substantial difficulty in controlling fiscal imbalances, so that the additional strains resulting from strict control of inflation …

This paper considers whether 'liquidity trap' issues have important bearing on the desirability of inflation targeting … 'indeterminacy' dangers are created by variants of inflation targeting, the latter when forecasts of future inflation enter the … variable can still be the inflation rate …

not present in preventing or combating inflation, deflation can be prevented and, if it has taken hold, can be overcome …After an absence of almost half a century, the spectre of deflation is once again haunting the corridors of central … banks and finance ministries in the industrial world. While preventing or combating deflation poses some unique difficulties …