inflation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable … loss function (corresponding to flexible inflation targeting) is discussed, including the index and level for the inflation … price stability. The benefits of credibility (private inflation expectations coinciding with the inflation target) are …

A number of commentators have argued that the desirability of inflation targeting as a framework for monetary policy … risks to financial stability, but that it is possible to generalize an inflation targeting framework to take account of … form of flexible inflation targeting; in particular, the paper proposes a target criterion that would still imply an …

out to be only a slowdown, and inflation never departed from levels consistent with the ECB's quantitative definition of …

stabilization of different CPI components will not generally result into perfect stabilization of headline inflation. National …

The paper studies the inflation rate associated with optimal monetary policy in a standard suite of DSGE models, when ….There is an optimal inflation rate for producer prices in the Calvo model, given by the 'core inflation' process generated by … the indexation rule of the constrained price setters. It is constant only if core inflation is constant. A zero rate of …

on a number of grounds which we evaluate in this paper. We show that observed inflation persistence in U.S. time series … is consistent with the absence of structural inflation stickiness as is the case in the benchmark NNS economy. We …