focusing inflation targeting that is implemented by a Taylor type rule, a rule that in equilibrium is reflected in the exchange … monetary can't deliver a stationary domestic price level. Another feature in the data for inflation targeting countries that is … direction from PPP in response to an 'inflation' shock - the 'bad news god news' result of Clarida -Waldman (2008;2014). This is …

This paper explores the relationship between inflation and the existence of a publicly-traded, long-maturity, nominal …, domestic-currency bond market. Bond holders suffer from inflation and could be a potent anti-inflationary force; I ask whether … their presence is apparent empirically. I use a panel data approach, examining the difference in inflation before and after …

and the inflation rate without error, then it is typically optimal to respond infinitely strongly to observed deviations … from the central bank's targets. If it observes inflation and the output gap with error, the central bank will temper its … terms of estimated output and inflation then it is optimal to respond infinitely strongly to estimated deviations from the …

interest on reserves. While their effects on output and inflation are small, these policies require major adjustments in the …