In this paper I evaluate inflation targeting for ten countries. The evaluation is based on unconditional as well as … conditional measures of the variance of inflation around target. With strict inflation targeting, expectations of the future … Price Index (CPI) when calculating the inflation rate, I find that the null hypothesis can be rejected for six of ten …

inflation as one component of future real wages. This paper scrutinizes whether countries in CEE that officially announce an … inflation target are tempted to act time-inconsistently and switch from the announced inflation target to an exchange rate … target in order to sustain higher output via surprise inflation. If market participants discover the time-inconsistency, they …

The role of the exchange rate under inflation targeting (IT) remains an unresolved issue in literature and policy … whether there is a relation between the nominal exchange rate regime and inflation performance in IT countries. We use a panel … regime that differs from a pure float entails higher or lower inflation. We use two de facto foreign exchange regime …

This paper develops a set of leading indicators of industrial production growth and consumer price inflation for the … inflation. Our findings provide evidence on the factors determining real activity and inflation in a period of disinflation and …

Since the 2001 recession, average core inflation has been below the Federal Reserve's 2% target. This deflationary bias … corrects the bias and brings inflation back on target. Adopting this asymmetric rule improves welfare and reduces the risk of …

-causes inflation in the euro area. Based on data from 1970 to 2006 and forecasting horizons of up to 12 quarters, there is surprisingly … power of money growth for inflation is substantially lower in more recent sample periods compared to the 1970s and 1980s …. This cautions against using money-based inflation models anchored in very long samples for policy advice. …

We analyze empirical links between the perceived tail-risk of inflation, the policy rate, longer-term interest rates … always in reaction to Fed announcements; and, (v) our impulse responses demonstrate that odds of extreme inflation outcomes …

Over the last twenty years the level and volatility of inflation decreased across industrial countries. The inflation … test theluck hypothesis we examine the inflation experience of Canada, one of the earliest and most successful adopter of … an inflation targeting monetary policy. We Kalman-filter the historical structural shocks consistent with an estimated …

inflation, particularly in the 1970s, and the choice of an exchange rate regime consistent with domestic monetary and fiscal … reminiscent of the global inflation generated by the weak dollar in the 1970s. …