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 …

I compare nominal GDP level targeting to flexible inflation targeting in a small New Keynesian model subject to the …, for a standard calibration, inflation targeting under discretion leaves the economy open to a deflationary trap. Nominal … level rule. These result suggest that inflation targeting should not be ditched. Still, it can be improved significantly, by …

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 …

analysis of interest rules, the inflation rate depends on the output gap, which is solely determined by its own lags and the …

Riksbank act. Interest rate decisions are normally taken with the aim to bring inflation in line with the 2 per cent inflation … aggregation rule. Disagreements on the inflation outlook have occurred due to different opinions on the relation between growth … and inflation, the current state of the economy and the future outlook for exogenous determinants of inflation. By …