. Starting from the issues and concepts familiar from research and policy experience in the 1990s of inflation targeting - as …

The recent debate over monetary policy strategies concludes that monetary targeting and inflation targeting in practice …

inflation-targeting regime 19932002 with the policies implied by certain simple instrument rules. Calibrated rules that are … describe monetary policy about equally well. A close reading of various policy documents, e.g., Inflation Reports, minutes from …

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. …

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 …