The paper estimates two time-varying parameter models of Chilean inflation: a Phillips curve model and a small open …; forecasts that include the pre-announced inflation target as a regressor are relatively better; the Phillips curve model …

Since Taylor estimated a trade-off between inflation and output variance, it has been widely accepted that efforts to … keep the inflation rate “too low and stable” will likely result in relatively larger output fluctuations. Following the … generalized reduction in inflation variance in the 1990s, that concern was rekindled. This study estimates whether conditional …