interest rate is determined by the inflation rate and the change in the unemployment rate, perform well when knowledge is both …

inflation and its target, and the gap between output and its potential. Under the opportunistic approach to disinflation a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output … stabilization when inflation is close to its target, allowing supply shocks and unforeseen fluctuations in aggregate demand to move …

inflation and its target, and the gap between output and its potential. Under 'the opportunistic approach to disinflation' a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output … stabilization when inflation is close to its target, allowing supply shocks and unforeseen fluctuations in aggregate demand to move …

United States during the 1990s. Proponents of this approach recommend that, when inflation is moderate but still above the … long-run objective, the central bank should not move immediately to fight inflation, but rather wait for exogenous … circumstances — such as favourable supply shocks and unforeseen recessions — to deliver the desired reduction in inflation. While …

inflation and its target, and the gap between output and its potential. Under “the opportunistic approach to disinflation” a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output … stabilization when inflation is close to its target, allowing supply shocks and unforeseen fluctuations in aggregate demand to move …

negligible for target inflation rates as low as 2 percent. However, the effects of the constraint are very non-linear with … respect to the inflation target and produce a quantitatively significant deterioration of the performance of the economy with … targets between 0 and 1 percent. The variability of output increases significantly and that of inflation also rises somewhat …

interest rate is determined by the inflation rate and the change in the unemployment rate, perform well when knowledge is both …

We study the design of monetary policy in a low inflation environment taking into account the limitations imposed by … the possibility that the quantity of base money may affect output and inflation even when the interest rate is constrained … influence the exchange rate. We find that the optimal policy near price stability is asymmetric, that is, as inflation declines …

interest rate is raised or lowered from its existing level in response to inflation and changes in economic activity. These …

interest rate is determined by the inflation rate and the change in the unemployment rate, perform well when knowledge is both …