In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize … is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting … headline inflation, assigns zero weight to import prices. …

In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating … stabilize price movements in the flexible price sector. Also, in the presence of financial frictions, stabilizing core inflation … frictions a welfaremaximizing central bank should adopt flexible headline inflation targeting - a target based on headline …

stickiness and price dispersion. We demonstrate that calculations of price inflation require conditioning not only on CPU quality …

This paper evaluates the success of Inflation Targeting on inflation and growth on a large panel data set of both … evidence to show that the support for a successful Inflation Targeting policy is very weak or non-existent. We use various … the process by which inflation targeting is hypothesised to influence inflation and growth, Section 3 surveys this …

Central bankers are raising interest rates on the assumption that wage-push inflation may lead to stagflation. This is …

inflation and measures welfare changes using the compensating variation and equivalent incomes in a cross-national comparative … perspective. The impact of inflation depends on good-specific price increases and budget shares. Budget shares for necessities (e … necessities has resulted in higher inflation in poorer countries. Counter to the media narrative, the distributional impact is …

What are the broad societal implications of inflation and unemployment? Analyzing a dataset of over 1.9 million …, we find that both inflation and unemployment have a negative link with confidence in financial institutions. While … inflation is generally unassociated with confidence in government and leadership approval, unemployment still has a strong …