inflation averse, but not infinitely so, than the fiscal authority. This happens because employment and government expenditures … are not invariant to changes in the monetary regime. If the fiscal authority gives the central bank to an inflation target … authority's gain from inflation targeting is highest if the median union voter has no employment objective. When the union cares …

Inflation targeting involves using all available information in stabilizing inflation around some target rate (Svensson …, 2003). Inflation is typically at the very end of the transmission mechanism and hence its de-termination is subject to much …

Monetary policy transmission lags create credibility problems for the inflation-targeting policy maker who acts under …: for the period monetary policy influences output, inflation is predetermined and the best discretionary policy is to …

Both the optimal inflation target and the optimal degree of output stabilization are found to be conditional on the … explicit inflation targeting regime removes inflation bias from monetary policy, but does not remove the trade-off related to … average level of output and output stabilization. In contrast to usual results on inflation targeting, appointing a central …

We use the ten years of experience in inflation-targeting in New Zealand since 1989 to test whether monetary policy … appears to conform to the simple rules that have been recommended for it in the literature. Of the inflation targeting central … Policy Statements is firmly based on targeting the inflation rate in the future we find, using the Bank’s own forecasts, that …

either pricelevel or nominal GDP targeting and compare these regimes to inflation targeting. These interest-rate rules are … domain of attraction of the targeted steady state, volatility of inflation and output and sensitivity to the speed of …

of the two. We compare the accounting definition of deficit with the economic definition which takes inflation into …