either the inflation or the output gap varies in terms of magnitude and/or statistical significance across the high and low … inflation regimes in all countries. In particular, the exchange rate has an impact in the former but not in the latter regime …

inflation targeter early in this period but began to pay less attention to inflation after 2009. Loss of the strong nominal …

are ‘highly complementary and mutually consistent objectives' in a flexible inflation targeting regime which ‘dictates … inflation.' (BG, 1999, p.18). This conclusion is straightforward within the variant of the NK-DSGE framework used by BG in which … asset inflation shows up as a factor ‘augmenting' the IS curve. In the present paper, we pursue a different modelling …

stability. To contain domestic inflation these central banks absorb rather then provide liquidity in their regular monetary … policy operations. Based on an augmented Barro-Gordon framework we show that inflation targeting within an environment of … implementing sterilization costs into the central bank's objective function the inflation bias increases …

different predictions for the optimal inflation rate than their popular homogenous-firm counterparts: (1) the optimal steady …-state inflation rate generically differs from zero and (2) inflation optimally responds to productivity disturbances. We show this by … estimate the historically optimal inflation path for the U.S. economy. In the year 1977, the optimal inflation rate stood at 1 …

We analyze the impact of price stability-oriented monetary strategies (inflation targeting — IT — and constraining … exchange rate arrangements) on inflation persistence using a time-varying coefficients framework in a panel of 68 countries … (1993–2013). We show that explicit IT has a stronger effect on taming inflation persistence than implicit IT and is …