inflation. This model generates endogenous waves of optimism and pessimism (Animal Spirits") that are generated by the … implications for monetary policies. One of our main results is that strict inflation targeting is suboptimal because it gives more … scope for waves of optimism and pessimism to emerge thereby destabilizing output and inflation. …

countries with high inflation, the output effects of monetary policies are significantly reduced. A lot of variation in the …

, in a strict inflation targeting regime the use of forward-looking data leads to a lower quality of monetary policymaking … especially in a strict inflation targeting regime …

achieve the inflation objective, while other instruments (minimum reserve requirements and macro prudential control) should be …

This paper explores the impact of the exchange rate regime on inflation and output in the Central and Eastern European … exchange rate stability have a better explanatory power than the de jure measures in the inflation and growth equations. For … the whole observation period the estimations reveal a significant impact of exchange rate stability on low inflation as …

The sovereign debt crisis has made it clear that central banking is more than keeping inflation low. Central banks are …

rigid economy. Finally, we analyze how structural reforms change the tradeoffs between output and inflation variability. Our …

(China, India, Russia, Brazil) on the other. …