performs better than an explicit inflation target as proposed by Svensson. The reason is that an inflation target produces a … higher variance of inflation. It is also shown that it is optimal to offer a linear inflation contract that does not depend …

private sector inflation forecasts. But beyond the optimum people might: (1) start to attach too much weight to the … deteriorates the (perceived) quality of private sector inflation forecasts. Inflation then is set in a more backward looking manner … resulting in higher inflation persistence. By using a panel data set on the transparency of 100 central banks we find empirical …

not improve welfare, and in some cases is not desirable as it impairs stabilization of current inflation and/or output … inflation forecasts on central bank actions, which induces the central bank to focus exclusively on price stability in …

(1995) performs better in terms of social welfare than an explicit inflation target as proposed by Svensson (1997). The … variance of inflation will be considerably higher with an inflation target. We also find that on top of an optimal linear … outcome. In the case of an inflation target, a more conservative banker is needed than with a Walsh contract …

accountability through transparency leads to a lower expected rate of inflation and less stabilization of supply shocks …

changed central banking in many ways: by shifting the focus of monetary policy from fighting too high inflation towards … fighting too low inflation; by prompting new ‘experimental’ non-conventional measures, which risk to cause large, long …