n this paper we incorporate the term structure of interest rates in a standard inflation forecast targeting framework. We find that under flexible inflation targeting and uncertainty in the degree of persistence in the economy, allowing for active learning possibilities has effects on the...

Central banks around the world have a reputation for being secretive about their operations and market assessments. It is sometimes argued that central banks need flexibility and therefore cannot be fully transparent. We find that this explanation does not carry through in a forward-looking New...

There is a broad consensus in the literature that costs of information processing and acquisition may generate costly disagreements in expectations among economic agents, and that central banks may play a central role in reducing such dispersion in expectations. This paper analyses empirically...

In this paper we estimate a New-Keynesian DSGE model with heterogeneity in price and wage setting behavior. In a recent study, Coibion and Gorodnichenko (2011) develop a DSGE model, in which firms follow four different types of price setting schemes: sticky prices, sticky information, rule of...

This important collection of previously published articles and papers, together with an original introduction by the editor, provides both a comprehensive overview of the subject and a more detailed examination of the issues.

There has been a recent evolution in the relationship between modern monetary policy and central banking, visible in the now merged study of public economic choices made every day and the features of monetary architectures and institutions. Though previously separate focuses, these are now...

This volume contains a collection of the most important articles on independent central banks and economic performance. The collection is comprehensive and divided into four parts: theoretical foundation of central banks independence, central bank independence, empirical evidence on central bank...