Central banker faces a tradeoff between surprise inflation and building reputation, defined as the private sector's belief … the zero reputation limit, a gradual disinflation is preferred despite the absence of inflation inertia in the private … future grounds with temptation leads the way for a negative drift of reputation in equilibrium. Plans that successfully …

Understanding the sources of inflation persistence is crucial for monetary policy. This paper provides an empirical … assessment of the influence of inflation expectations' anchoring on the persistence of inflation. We construct a novel index of … inflation expectations' anchoring using survey-based inflation forecasts for 45 economies starting in 1989. We then study the …

credibility and, thus, maintaining low inflation in the long run is closely linked to anchored inflation expectations …This paper aims to improve the understanding of U.S. inflation dynamics by separating out structural from cyclical … effects using frequency domain techniques. Most empirical studies of inflation dynamics do not distinguish between secular and …

needed to strengthen the credibility of Ghana''s inflation-targeting regime.1 …Money has only limited information value for future inflation in Ghana over a typical monetary policy implementation …) are shown to be important predictors of future price changes. Inflation inertia is high and inflation expectations are …

This paper revisits the link between the nominal exchange rate regime and inflation, based on a sample of 145 emerging … low inflation benefits associated with pegging the exchange rate. To test our hypothesis, we exploit a novel dataset of … significantly lower inflation in EMDCs than flexible exchange rates, and that this effect is much stronger for de facto pegs that …

credibility and the speed of private sector learning, which are shown to have a major impact on the speed of inflation adjustment …In this paper three possible reasons are examined for a sluggish inflation response to a hard currency peg. Models of …. But even if individual agents believe the government will not devalue, it is shown that inflation inertia can still arise …

This paper explains why sovereign issuers of reserve currencies do not use unexpected inflation to repudiate their … excessive money creation. It is shown that even without policy precommitment or aversion to inflation, the availability of … alternative currencies can support an equilibrium with a finite, time consistent inflation rate …

This paper focuses on the role of debt maturity in managing the government’s incentives to use opportunistic inflation … powerful instrument to affect the time profile of the inflation tax base and, hence, to mitigate the distortions introduced by …