inflation. Hence, the initial response of inflation to monetary shocks is not sufficient to discriminate across models and for …

, inflation targeting remains robustly optimal in non-U.S. economies. The implementation of this non-cooperative policy results in … inflation targeting to take advantage of its effects on global product and asset markets, generating negative spillovers on the …

rational private sector expectations about housing prices and inflation, optimal monetary policy can be characterized by a … standard 'target criterion' that refers to inflation and the output gap, without making reference to housing prices. When the … increases (decreases), policy should adopt a stance that is projected to undershoot (overshoot) its normal targets for inflation …

residuals of the policy rule equation at these shock dates accordingly. In spite of its utmost agnostic nature, this approach …

output) shortly after a monetary policy shock. To overcome this problem, we propose to estimate the VAR parameters under the … restriction that economic theory is not violated, while the shocks are still recursively identified. We solve this optimization …, generates theory-consistent impulse responses, and is as close as possible to the recursive scheme …

aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …

rate policy helps to reconcile the inflation and output persistence with empirical observations for the US economy. We show … findings for the inflation inertia in a model with capital adjustment costs and variable capacity utilization, the output … response to an interest shock is found to be too large and no longer hump-shaped in this case. In addition we find that the …