This Paper compares the social efficiency of monetary targeting and inflation targeting when central banks may have … feasible. Under inflation targeting and monetary targeting, central banks may have an incentive to signal their private … information in order to influence the public's expectations about future inflation. We show that inflation targeting is superior …

inflation rates as low as 2%. The effects of the constraint are, however, non-linear with respect to the inflation target and … variability of output increases significantly and that of inflation also rises somewhat. Also, we show that the asymmetry of the … short of potential with lower inflation targets. …

The paper advances a simple and tractable Wicksellian model of inflation, in which the price level is determined by the …

game. Reciprocity induces a positive inflation bias and nominal fluctuations in the monetary union. …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation …

economy may be affected by the present circumstances of low rates of inflation and low nominal interest rates. …

banker's preferences for inflation stabilization relative to output stabilization. Transparency enhances the central bank …'s accountability. The paper shows that transparency leads to a lower expected rate of inflation and less stabilization of supply shocks. …

facilitate credible, low-inflation policies depends critically on the political structure of the monetary union. Efficient …