number of developing countries now have domestic inflation targets administered by independent and transparent central banks … monetary policy in these countries does not have any obvious international cost. Inflation targeters have lower exchange rate … volatility and less frequent "sudden stops" of capital flows than similar countries that do not target inflation. Inflation …

(GFC) of 2007-2008. It was greatly aided by the adoption of inflation targeting. In this paper we evaluate this convergence …

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

and makes it easier for the central bank to meet its inflation target. The threat of deflation and a liquidity trap is … inflation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable … loss function (corresponding to flexible inflation targeting) is discussed, including the index and level for the inflation …

inflation and aggregate output. Our main findings are threefold. First, monetary policy affects the probability of a crisis both … central bank can both reduce the probability of a crisis and increase welfare by departing from strict inflation targeting and …

A number of commentators have argued that the desirability of inflation targeting as a framework for monetary policy … risks to financial stability, but that it is possible to generalize an inflation targeting framework to take account of … form of flexible inflation targeting; in particular, the paper proposes a target criterion that would still imply an …

of Japan's rhetoric was not helpful in fighting deflation, and the interest rate hike in August 2000 amid deflation was a …This paper reviews Japanese monetary policy over the last two decades with an emphasis on the experience of deflation … serious mistake. Deflation can be quite costly, and a key element in both preventing and escaping deflation is the management …

multiple solutions in rational expectations (RE) models. In three of these cases--involving inflation forecast targeting, the … zero-lower bound deflation trap, and the fiscal theory of the price level--analysis based on E-stability and adaptive …