-level stability and low (including zero) inflation and the decisions about the price index, the quantitative target and the role of … a commitment to a simple instrument rule (like a Taylor rule), forecast targeting (like inflation-forecast targeting … against inflation-forecast targeting are scrutinized and found unconvincing. …

Using a small empirical model of inflation, output, and money estimated on U.S. data, we compare the relative … performance of monetary targeting and inflation targeting. The results show that monetary targeting would be quite inefficient …, with both higher inflation and output variability. This is true even with a deterministic money demand formulation. In this …

The central bank's optimal reaction to foreign and domestic shocks is analyzed in an inflation targeting model allowing … that the interest rate response to foreign shocks is smaller when pass-through is low. Second, the inflation …

The use of explicit inflation targets has meant that monetary policy has become more transparent and also easier to … inflation. Our purpose is to separate the effects on the interest-rate instrument from (i) discretionary changes in the rule for …

other reaction coefficients, on inflation and output, are sub-optimal. However, an indirect exchange rate response, through … a policy reaction to Consumer Price Index (CPI) inflation rather than to domestic inflation, is welfare enhancing. This … result is independent of whether society values domestic or CPI inflation stabilization. …

conventional wisdom, it is found that price-level targeting leads to a better trade-off between inflation and output …-gap variability than inflation targeting, when the central bank acts under discretion. In some cases, price-level targeting under … dircretion results in the same equilibrium as inflation targeting under commitment. …

In this paper we investigate the problem of selecting an optimal horizon for inflation targeting in the United Kingdom …

This paper demonstrates how a target for money growth can be beneficial for an inflation targeting central bank acting …

A central bank pursuing the policy of inflation targeting aims to keep inflation as close as possible to a pre …-announced value. But which 'inflation' should this be? Quarterly, annual, biennial? In theoretical models it is typically inflation … during one period. We analyze how changing the period over which the inflation rate is defined - i.e. changing central bank …