stability under adaptive learning for interest rate rules that respond to inflation measures differing in their degree of price … stickiness. We find that rules responding to headline inflation measures that assign a positive weight to the inflation of the … the inflation of the sector with high price stickiness. By this we mean that they are more prone to induce non …

We analyse optimal monetary and fiscal policy in a New-Keynesian model with public debt and inflation persistence … striking result is not true with high degrees of inflation persistence. Secondly, we show that optimal fiscal policy is more … active under discretion than commitment at all degrees of inflation persistence and all levels of debt …

the model's output gap as a benchmark, we further show that common output gap estimation methods exhibit a systematic bias …

adjustment rule, under alternative inflation targets, in terms of output losses in a macroeconomic model, using European Union … credibility, and that a positive inflation target, as opposed to zero inflation, leads to higher and less volatile output. These … countries supports country-specific flexible inflation targeting …

transformed money demand, in addition to the observed output gap and inflation, into a simple but optimal interest rate rule …

policy regime. While inflation targeting prevails for myopia that distorts agents' inflation expectations, price level … bygones are not bygones under price level targeting, rational inflation expectations is a minimal condition for optimality in …

-through to export prices, and having an inflation targeting regime with non-freely floating exchange rates, increase …

moderately nonlinear model with a time-varying nonaccelerating-inflation-rate-of-unemployment (NAIRU). Rules that perform well in …

of a freely floating exchange rate, an explicit target for inflation, and a mechanism than ensures a stable government … domestic and CPI inflation targeting interest rate rules alongside a ''Structural Surplus Fiscal Rule'' as followed recently in … Chile. A comparison with a fixed exchange rate regime is made. We find that domestic inflation targeting is superior to …