strengthens the gains from make-up strategies relative to inflation targeting, especially if policy space is reduced. This result … permanent scars on long-run aggregate supply. Make-up strategies not only foster the alignment of inflation with target but also … inherent make-up element is sufficiently pronounced. Inflation is less responsive to monetary policy due to the interaction …

economic activity, inflation and government debt in face of an occasionally binding lower bound on the nominal interest rate in … policy, the optimal fiscal policy rule features a strong counter-cyclical response to the deviation of inflation from the … inflation significantly improves welfare and reduces the lower-bound frequency. In addition, the optimal simple monetary and …

We show that the announcement of the ECB's Strategy Review and the revision of its inflation target in summer 2021 went … persistent credibility gains, even after inflation increased. …

policy is not constrained by the ZLB. The neutral rate - the level of the policy rate consistent with stable inflation and …

inflation targeting result in a binding lower bound one-fourth of the time as well as inflation and output exhibiting large … purchases. Makeup strategies, especially average inflation targeting with a long averaging window, perform better than inflation …

financial crisis and speeds up exit from the crisis. The downside of coordination is variability in inflation and in the …

inflation expectations and consumer spending. We document that for the Euro Area and almost all of its constituent countries … this relationship is generally positive: a higher expected change in inflation is associated with an increase in the … probabilities from our micro-level analysis, we indirectly estimate the impact of a gradual increase in inflation expectations on …