fooled by its own credibility for low inflation into being insufficiently preemptive in a business expansion. Then monetary …

-stationarity. It critiques interest rate targeting as inflation tax smoothing. It argues that stabilization policy implemented by … interest rate targeting may inadvertently induce martingale-like behavior in nominal rates and inflation. The paper explains …

low long-run inflation objective, operational independence for the People's Bank of China (PBC) with formal strategic … interest rate fluctuations). We argue that anchoring monetary policy with an explicit inflation objective would be the most … reliable way for the PBC to tie down inflation expectations, and thereby enable monetary policy to make the best contribution …