The paper extends previous analysis of closed-economy inflation targeting to a small open economy with forward … for monetary policy. The paper compares targeting of CPI and domestic inflation, strict and flexible inflation targeting …, and inflation-targeting reaction functions and the Talyor rule. The optimal monetary policy response to several different …

Inflation targeting is shown to imply inflation forecast targeting : the central bank's inflation forecast becomes an … intermediate target. Inflation forecast targeting simplifies both implementaing and monitoring of monetary policy. …

. Starting from the issues and concepts familiar from research and policy experience in the 1990s of inflation targeting -as …

aggregate or an index of inflation (either alone or in combination with some measure of the output gap). Because there is a …

We demonstrate the existence of a monetary policy tradeoff between price-inflation variability and output … empirically reasonable degree of nominal wage inertia, strict inflation targeting induces substantial output-gap volatility. …

Policy rules that are consistent with inflation targeting are examined in a small macroeconometric model of the US … imply implicit instrument rules, may be closer to actual operating procedures of inflation-targeting central banks. WE find … that inflation forecasts are central for good policy rules under inflation targeting. Some simple instrument and targeting …

Can higher inflation diminish the government debt and contribute to financing the budget deficit? And how do these …

indexed debt, such that the marginal benefit of a surprise inflation exactly balances the marginal cost. Unlike in earlier … inflation and positive nominal interest rates. We compare our results with those in Persson, Persson, and Svensson (1987), Calvo …