shocks. We develop a new-keynesian small open-economy model and show that non-food inflation is a good proxy for core … inflation in high-income countries, but not for middle-income and low-income countries. Although, in these countries we find … that associating non-food inflation and core inflation may be promoting bably-designed policies, and consequently central …

central banks' monetary policy must be credible if the authorities want to curb inflation. A second view is that central banks … set their monetary policy by using all the information relevant for inflation and output projections. In Europe, a … controversy has emerged about the role of monetary aggregates as useful indicators of future inflation and output. On one hand …

inflation, both as an objective and as an intermediate instrument. We want to show that other variables like employment can be … that they can be function of employment only, which then dominates inflation for use in the policy rule. …