In a standard New Keynesian model, a myopic central bank concerned with stabilizing inflation and changes in the output … stabilizing output gap changes, the central bank imparts inertia into output and inflation that is absent under pure discretion … social outcomes if it focuses on inflation and changes in the output gap than are achieved under inflation targeting. …

This paper analyses the impact of asymmetric preferences with respect to inflation and output by policymakers on … for low inflation. Using data for four G7 economies, the paper shows that, except for Germany, nonlinear and asymmetric … monetary authority develops a greater precautionary demand for output expansions than for low inflation. This may generate a …

reasons are the reform of monetary policy, in 1993 with the adoption of inflation targeting and in 1997 with the establishment … of trade union power contributed to the control of wage inflation. The major continental economies failed to match UK … performance because of institutional rigidities, despite low inflation expectations. …

output and house prices rather than simply minimising the variance of inflation. Thus the findings point to a critical role …

model of inflation dynamics to evaluate monetary policies that rely on going long. It concludes that these policies for the … most part fail to keep inflation under control. A complementary methodological contribution is to re-state the classic … integrate the endogenous determination of inflation and the term structure of interest rates. …

stability has been fostered by improved monetary policy and by associated changes in the behaviour of inflation, which has …