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 …

Japan suffered a very high inflation rate in 1973-74. The CPI inflation rate rose to near 30% in 1974, the highest rate … monetary policy should not be overruled or the high inflation would be repeated. By this logic, the Bank of Japan obtained /de …, the Bank of Japan was able to tighten monetary policy and to contain the inflation rate under 10 percent. The interest …

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 …

We present a simple long-run aggregate demand and supply framework for evaluating long-run inflation. The framework …-run inflation as well as transitions between steady states. We use the analysis to provide a fresh perspective on the forces that … drove global inflation downward over the past four decades. We argue that for inflation to remain low and stable in the …