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 …

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 …

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

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 …

raising their interest rate instrument more than one-for-one in response to higher inflation---to an environment in which …