experiment of the past decade, stemming from a belief of the government that higher interest rates cause higher inflation … eventually a negative coefficient on inflation in the policy rule. In such an environment, was the exchange rate still a random … walk? Was inflation anchored? Does the “standard model” suffice to explain the broad contours of macroeconomic outcomes in …

found to help rationalizing the hump-shaped response of inflation, without resorting to the counterfactual assumption of …

1979. Even if monetary policy is found to react only mildly to inflation pre-Volcker, the substantial degrees of bounded …

inflation target can be estimated from the observed trends in relative prices. The optimal inflation target for the U.K. is …

aiming for two per cent inflation over the medium term”, with “symmetric commitment” to this target. “Symmetry means that the … therefore analyse this policy strategy through a model of inflation target zone, with a central value and symmetric upper and … lower bounds on inflation, within which the central bank may decide not to intervene, provided inflation is expected to …

Inflation targeting is implemented in different ways – most often by adopting point targets, by having tolerance bands … target types affect the anchoring of inflation expectations at shorter horizons differently. It tests two contradictory …. This suggests that there are some benefits to adopting intervals, but the central bank can anchor inflation expectations …

estate, as well as the costs of public goods to develop alternative inflation measures in Germany since the introduction of … the euro. Real economic growth as well as median wage developments are reexamined in light of the alternative inflation …