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 …

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

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 …

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

By driving a wedge between the marginal returns to real and financial capital, inflation distorts production. The … approximately proportional to the square of the original inflation distorsion. …

paper, instead, shows that it is possible to analyze equilibrium inflation determination without any reference to either …