Evaluating inflation-targeting monetary policy is more complicated than checking whether inflation has been on target …, because inflation control is imperfect and flexible inflation targeting means that deviations from target may be deliberate in … variability of the inflation-gap and output-gap forecasts can be used to evaluate policy ex ante, that is, taking into account the …

We study how changes in the value of the steady-state real interest rate affect the optimal inflation target, both in …-for-one: increases in the optimal inflation rate are generally lower than declines in the steady-state real interest rate. Our approach … allows us not only to assess the uncertainty surrounding the optimal inflation target, but also to determine the latter while …

target inflation. We find that when the government cannot commit to its policies, the greater transparency of the exchange …

As with many monetary policy frameworks, inflation targeting is subject to the well-known problem of inflation bias …. With inflation targeting, however, the bias becomes apparent not as inflation above desired levels, but as a wedge between … the announced target and observed inflation. This inconsistency could render the framework neither credible nor …