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 …

that six ideas that are now accepted by monetary authorities and governments in almost all countries of the world have led … to improved monetary performance: 1) there is no long-run tradeoff between output (employment) and inflation; 2 …) expectations are critical to monetary policy outcomes; 3) inflation has high costs; 4) monetary policy is subject to the time …

shows not only that greater independence is associated with lower inflation, but also that the central bank's rights not to … finance the government and to set interest rates independently increase its effectiveness. The role of inflation targeting and … the distinction between price level and inflation targeting are also analyzed …

This paper examines what strategies policymakers have used to both reduce and control inflation. It first outlines why … a consensus has emerged that inflation needs to be controlled. Then it examines four basic strategies: exchange rate … pegging, monetary targeting, inflation targeting, and the just do it' strategy of preemptive monetary policy with no explicit …

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 …

to solve these problems, we propose modifying the central bank's objective to (i) include state-contingent inflation … targets, (ii) target a measure of inflation that overweights non-tradable inflation …

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