We study how changes in the value of the steady-state real interest rate affect the optimal inflation target, both in …-for-one: increases in the optimal inflation rate are generally lower than declines in the steady-state real interest rate. Our approach … allows us not only to assess the uncertainty surrounding the optimal inflation target, but also to determine the latter while …

determine inflation in this regime, so I base the analysis on the fiscal theory of the price level. I find that monetary policy … can peg the nominal rate, and determine expected inflation. With sticky prices, monetary policy can also affect real … interest rates and output, though higher interest rates raise output and then inflation. The conventional sign requires a …

This paper investigates the hypothesis that surprise changes in the money supply and anticipated inflation (the Mundell … surprises and expected real interest or an inverse relationship between anticipated inflation and expected real interest. These …

-fledged inflation targeting regimes in place or have recently adopted them, using an array of methodologies commonly used in the … that the interest rate gap can be a good predictor of future inflation dynamics and economic growth. In addition, looking …

-fledged inflation targeting regimes in place or have recently adopted them, using an array of methodologies commonly used in the … that the interest rate gap can be a good predictor of future inflation dynamics and economic growth. In addition, looking …

This paper proposes a new method of estimating the Taylor rule with a time-varying implicit inflation target and a time …-varying natural rate of interest. The inflation target and the natural rate are modeled as random walks and are estimated using …

that modest alterations to monetary policy have vast consequences is inconsistent with theory and not supported by evidence …