. Under discretionary monetary policy the size of the inflation bias depends on the fiscal policy regime. Using the timeless … alternative fiscal policy rules, and inflation and output persistence reflects the economic data. With the deficit rules, the …

This paper investigates the question of whether a transition to a low-inflation environment, induced by a shift in … previous empirical work in that we pay particular attention to the identification of changes in the inflation environment, we … to 2001, we find evidence in support of the hypothesis that exchange rate pass-through declines with a shift to a low-inflation …

inflation but also on the measure of inflation included in the rule and on whether the flexible-price good and the sticky …-price good are Edgeworth complements, substitutes or utility separable. We consider three possible measures of inflation: the … flexible-price inflation, the sticky price inflation and the core inflation; and we analyze three different types of rules: a …

contribute much to aggregate fluctuations. Capital gains taxes are important when there are persistent changes in the inflation … rate. Money growth shocks do not cause persistence changes in inflation when the central bank uses a money growth rule … inflation, raising both the nominal value of capital and the effective marginal capital gains tax rate. …

open economy inflation targeters face in practice. For Knight (1921), uncertainty differs from risk because the policymaker … capture the key open economy dynamics for Australia, Canada and New Zealand, three of the earliest inflation targeters that … aggressively to not only inflation and the output gap, but also the exchange rate and its associated shock. This result generalizes …