inflation. This model generates endogenous waves of optimism and pessimism ("Animal Spiritsʺ) 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. -- DSGE-model ; imperfect …

We evaluate the policy of flexible inflation targeting implemented by the Norges Bank since March 2001. We discuss 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. …

current operating procedures and make monetary policies more effective in fighting inflation. …

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

achieve the inflation objective, while other instruments (minimum reserve requirements and macro prudential control) should be … used to achieve financial stability. -- inflation targeting ; financial stability ; two pillar strategy …

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