The author discusses "inflation targeting in an open economy and, in particular, about the choice between "strict" and … "flexible" inflation targeting." …

Inflation target regimes (like those of New Zealand, Canada, U.K. and Sweden) are interpreted as having explicit … inflation targets and implicit employment targets. Without employment persistence, 'an inflation target-conservative' central … bank eliminates the inflation bias, mimics an optimal inflation contract, and dominates a Rogoff 'weight- conservative …

"Forecast targeting," forward-looking monetary policy that uses central-bank judgment to construct optimal policy …

Policy rules that are consistent with inflation targeting are examined in a small macroeconomic model of the US economy … implicit instrument rules, may be closer to actual operating procedures of inflation-targeting central banks. We find that … inflation forecasts are central for good policy rules under inflation targeting. Some simple instrument and targeting rules do …

Inflation target regimes (like those of New Zealand, Canada, U.K., Sweden and Finland) are interpreted as having … explicit inflation targets and implicit output/unemployment targets. Without output-unemployment persistence delegation of … monetary policy to a discretionary instrument-independent central bank with an optimal inflation target can eliminate the …

We examine to what extent variants of inflation-forecast targeting can avoid stabilization bias, incorporate history … perturbations. A suitably designed inflation-forecast targeting rule can achieve the social optimum and at the same time have a more …

Price level targeting (without base drift) and inflation targeting (with base drift) are compared under commitment and … discretion, with persistence in unemployment. Price level targeting is often said to imply more short-run inflation variability … and thereby more employment variability than inflation targeting. Counter to this conventional wisdom, under discretion a …