policy statements is likely to produce worse outcomes for output and inflation fluctuations, both because it will lead to … credibility of the central bank. In contrast, conducting monetary policy with a flexible inflation target rule is likely to … produce better outcomes. A flexible inflation target rule also allows the monetary authorities to effectively communicate to …

This paper examines the relationship between macroeconomic objectives of controlling inflation and trade … between the two, as a crawling peg exchange-rate policy can prevent inflation from affecting the performance of the foreign … sector. In practice, trade regime objectives have been linked with inflation-reducing objectives, often to the detriment of …

We argue that the Great Inflation experienced by both the United Kingdom and the United States in the 1970s has an … common doctrine underlying the systematic monetary policy choices in each country. The nonmonetary approach to inflation …

inflation and activity. If policy makers are guided by the welfare criterion of the representative household, globalization … forces also lead monetary policy to be more aggressive with regard to inflation fluctuations but, at the same time, more …

linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due … interest-rate rules whereby the central bank responds to a measure of past inflation. The consensus view that has emerged is … inflation are likely to ensure global stability provided that the coefficient on lagged interest rates is greater than unity …

This paper examines what strategies policymakers have used to both reduce and control inflation. It first outlines why … a consensus has emerged that inflation needs to be controlled. Then it examines four basic strategies: exchange rate … pegging, monetary targeting, inflation targeting, and the just do it' strategy of preemptive monetary policy with no explicit …

This paper shows that it is possible to analyze equilibrium inflation determination without any reference to either … become negligible. Inflation in the cashless limit is shown to be a function of the gap between the natural rate' of interest …-rate rule indicating the tightness of monetary policy. Inflation can be completely stabilized, in principle, by adjusting the …

Previous analysis of the implementation of inflation targeting is extended to monetary policy responses to different … stabilization or smoothing all call for a more gradual adjustment of the conditional inflation forecast toward the inflation target …. The conditional inflation forecast is the natural intermediate target during inflation targeting …