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 …

probability of being a common currency country and outcome' equations for growth, volatility and inflation. We find that both type … of common currency countries have lower inflation than countries with a domestic currency. Dollarized countries have …

followed the German hyper-inflation. Significant real dislocations arose after the monetary reform; and these can be attributed … to a government policy which subsidized heavy industry through the inflation tax proceeds. The "credibility problem …

from public finance economics. Because inflation exacerbates tax distortions that exist even without inflation, the welfare …In a previous attempt to articulate the costs of inflation (Leigh-Pemberton (1992)), the Bank of England outlined the … following costs of a fully-anticipated inflation: - the cost of economising on real money balances -- so-called shoe …

gains is the reduction in the distortions that result" from the interaction of tax rules and inflation. The paper quantifies …Going from low inflation to price stability involves a short term loss (associated with the" higher unemployment rate … required to reduce the inflation) and results in a series of welfare gains" in all future years. The primary source of these …

How far can shoe-leather go in explaining the welfare cost of inflation? Using a unique set of microeconomic data on … welfare cost of inflation analogous to Bailey's triangle, but based on a rigorous microeconomic framework. The welfare cost of … inflation varies considerably within the population, but never turns out to be very large (about 0.1 percent of consumption or …

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 …