, fueling a financial bubble whose bursting leads to debt-deflation in the next period with a non-zero probability. This dilemma … Fisher's debt deflation theory as being distinct from Keynes' liquidity trap. …

Over the last decade, a growing number of emerging countries has adopted inflation targeting as monetary policy … framework. In a recent paper, Freedman and Laxton (2009) ask the question “Why Inflation Targeting?”. This paper empirically …'s choice of adopting IT. Using panel data on a sample of thirty inflation targeting and non-inflation emerging countries, for …

Based on panel data of 58 countries, of which 22 Inflation Targeters and 36 non Inflation Targeters, over the period … 1980-2003, this paper highlights the effect of Inflation Targeting – IT- on Fiscal Discipline –FD-. We make four …

We use laboratory experiments with human subjects to test the relevance of di-fferent inflation targeting regimes. In … particular and within the standard New Keynesian model, we evaluate to what extent communication of the inflation target is … relevant to the success of inflation targeting. We -find that if the central bank only cares about inflation stabilization …

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 …

Japanese monetary policy during the "lost" decade and quantify the effect of quantitative easing on Japan's activity and prices … recession and deflation but also to provide considerable stimulation to both output and prices. If Japanese experience is any …

This paper aims to provide an alternative framework to previous studies of deflation in Japan. We focus on the real …