Issues of inflation measurement are fundamental to the conduct of monetary policy. Price indices form the foundation of … mechanism for holding independent policymakers accountable. To shed some light on the role of inflation measurement, the annual …: Price indices used by central banks; the role of wages and productivity in inflation policy; and the measurement and …

This paper discusses how optimal monetary policy is affected by differences in the combination of shocks an economy … experiences and the rigidities it exhibits. Without both nominal rigidities and economic shocks, monetary policy would be … shocks into both their policy actions and the design of monetary institutions. Specifically, shocks can be predominantly real …