.S. headline inflation rate. This paper compares alternative approaches to filtering out the transitory effects of these industry … price changes and measuring the underlying or core level of inflation over 2020-2021. The Federal Reserve's preferred … measure of core, the inflation rate excluding food and energy prices (XFE), has performed poorly: over most of 2020-21, it is …

securities, they contributed to the four-digit inflation reached in 2006. The remedy for the current situation is clearly to …

In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating …-maximizing central bank should adopt flexible headline inflation targeting a target for headline CPI inflation with some weight on the …

The ECB''s objective of medium-term inflation below 2 percent has been portrayed by critics as ambiguous, asymmetric … that: (1) in terms of guiding inflation expectations and policymaking, the current definition has functioned much as would … an inflation target centered on 1 1/2-1 3/4 percent; (2) the absence of a specific (point) target for medium …

We offer a novel methodology for assessing the quality of inflation reports. In contrast to the existing literature …, which mostly evaluates the formal quality of these reports, we evaluate their economic content by comparing inflation … coding of inflation reports to describe inflation factors communicated by central banks in real time. Regarding the latter …

This paper studies the role of central bank communication of its economic assessment in shaping inflation dynamics … agents'' understanding of policy reasoning, could bring about less volatile inflation and interest rate dynamics, and afford …