that fix exchange rates and those that target inflation. Inflation targeting is a more durable policy; no country has yet … been forced to abandon an inflation target, while many have abandoned fixed exchange rates. Indeed, even though inflation … targeting began only in 1990, the duration of inflation targeting regimes is at least as long as, or longer than all alternative …

methods is sizeable for the inflation response parameter, while it is very small for the output gap response and the interest …

policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We …

This paper evaluates inflation forecasts made by Norges Bank which is recognized as a successful forecast targeting … central bank. It is reasonable to expect that Norges Bank produces inflation forecasts that are on average better than other … margin. An explanation in terms of too high speed of adjustment to the inflation target is supported by the evidence. Norges …

suggested in the previous literature. The welfare gains are more clearly seen in the reduced volatility of inflation than …

flexible exchange rate regimes. Therefore, this paper determines what the alternative strategies inflation targeting, Taylor … rule, monetary conditions index, and managed floating have in common. The fact that all strategies build on reaction …

Conjectures about inflation expectations are inextricably linked to our understanding of the relationship between the … therefore examines the empirical properties of inflation expectations data constructed on the basis of both qualitative and … provides some insights into the nature of the interaction between monetary policy and inflation expectations. …

implications for monetary policy as the central bank has to decide which inflation rate to target. Our results demonstrate that …