In this paper we systematically evaluate how central banks respond to inflation deviations from target. We present a … stylized New Keynesian model in which agents' inflation expectations are sensitive to inflation deviations from target. To (re …-)establish credibility, optimal monetary policy under discretion is shown to set higher interest rates today if average inflation exceeded …

of their specific occupational background. Third, party members react significantly less to inflation and more to output …

central banks raise rates when society's inflation aversion is above its long-run trend. Second, the reaction to inflation is … non-linearly increasing in the degree of inflation aversion. Third, this emphasis on fighting inflation does not have a … banks. -- Central Bank ; Democratic Legitimation ; Eurobarometer ; Inflation Aversion ; Monetary Policy ; Public Preferences …

In this paper we systematically evaluate how central banks respond to inflation deviations from target. We present a … stylized New Keynesian model in which agents' inflation expectations are sensitive to inflation deviations from target. To (re …-)establish credibility, optimal monetary policy under discretion is shown to set higher interest rates today if average inflation exceeded …

central banks raise rates when society's inflation aversion is above its long‐run trend. Second, the reaction to inflation is … non‐linearly increasing in the degree of inflation aversion. Third, this emphasis on fighting inflation does not have a …

uncertainty of inflation and GDP growth forecasts into an otherwise standard New Keynesian model. We show that certainty … react significantly to inflation forecast uncertainty by reducing their policy rates in times of higher inflation …

In this paper we systematically evaluate how central banks respond to deviations from the inflation target. We present … a stylized New Keynesian model in which agents' inflation expectations are sensitive to deviations from the inflation … inflation exceeded the target in the past. Moreover, the central bank responds non-linearly to past inflation gaps. This is …

uncertainty of inflation and GDP growth forecasts into an otherwise standard New Keynesian model. We show that certainty … react significantly to inflation forecast uncertainty by reducing their policy rates in times of higher inflation …

In this paper we systematically evaluate how central banks respond to deviations from the inflation target. We present … a stylized New Keynesian model in which agents' inflation expectations are sensitive to deviations from the inflation … inflation exceeded the target in the past. Moreover, the central bank responds non-linearly to past inflation gaps. This is …

In this paper we systematically evaluate how central banks respond to deviations from the inflation target. We present … a stylized New Keynesian model in which agents' inflation expectations are sensitive to deviations from the inflation … inflation exceeded the target in the past. Moreover, the central bank responds non-linearly to past inflation gaps. This is …