We study the specific corporate governance problems of central banks in their complex role of inflation guardians …

What are the implications of targeting different measures of inflation? We extend a basic theoretical framework of … optimal monetary policy under inflation targeting to include several components of CPI inflation ratio, and analyze the … implications of using different measures of inflation as target variable — core inflation, CPI excluding interest rates, and …

inflation - i.e. targeting a j-period average of one-period inflation rates - will cause inflation expectations to change in a … way that improves the short-run trade-off faced by the monetary policymaker. Average inflation targeting is thus an … from the standpoint of the true social objective (inflation targeting under commitment), than the discretionary pursuit of …

inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model which … resolves this apparent micro - macro conflict. Our model is consistent with post-war U.S. evidence on inflation inertia even …

over the central bank’s objectives. This informational asymmetry is represented by a stochastic inflation target, upon … discretion and shows that while central banks with high inflation targets never use announcements, central banks with low … inflation targets occasionally, but not always, will choose to reveal their private information through an announcement. At …

from two perspectives. The first investigates the robustness of efficient inflation-forecast-based rules under transmission … for monetary policy is less clear. Typically, these more-robust policy rules have higher absolute levels of inflation … variability than less-robust rules. In other words, less-robust rules typically do a better job at controlling inflation …