inflation target. The first two strategies restore the Taylor principle as a sufficient condition for stabilizing expectations …. In contrast, in economies with persistent shocks, communicating the inflation target fails to protect against … policy strategy: announcing an inflation target is not enough to stabilize expectations -- one must also announce how this …

solutions such as the conservative central banker and optimal inflation contracts. Our theoretical model also shows how an … inflation targeting range should be set and how it should respond to changes in the nature of shocks to the economy …

A new measure of credibility is constructed as a function of the differential between observed inflation and some … estimate of the inflation rate that the central bank targets. The target is assumed to be met flexibly. Credibility is …-2008 financial crisis. The VIX, adopting an inflation target and central bank transparency, are the most reliable determinants of …

As central bankers intensify their focus on inflation as the primary goal of monetary policy, it becomes increasingly … important to have accurate and reliable measures of changes in the aggregate price level. Measuring inflation is surprisingly … transitory noise and bias. Noise causes short-run changes in measured inflation to inaccurately reflect movements in long …

labor markets employment and output are decreasing and inflation is initially increasing and then decreasing in the degree … of central bank conservatism. A radical-populist central banker who cares not at all about inflation (alternatively, who …

. Deflation subsided by 2005. As soon as inflation appeared to stabilize near a rate of zero, the Bank of Japan rapidly reduced …

Using a large-scale survey of U.S. households during the Covid-19 pandemic, we study how new information about fiscal … the Nielsen Homescan panel with different combinations of information about the severity of the pandemic, recent actions …

A model of interest rate movements in response to new information on the money stock is developed.The model, which …