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 …

remittances. These results have important implications for the design of inflation targeting in developing countries. …

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 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 …

The adoption of a credible monetary policy regime such as inflation targeting is known to reduce the persistence of … inflation fluctuations. This conclusion, however, is derived from aggregate inflation or sectoral inflation rates, not from … regional inflation data. This paper studies the regional dimension of inflation targeting, i.e. the consequences of inflation …

significantly more favorable output-inflation trade-off than his peers. …

significantly more favorable output-inflation trade-off than his peers. …

significantly more favorable output-inflation trade-off than his peers. …

significantly more favorable output-inflation trade-off than his peers. This effect is driven by outstanding central bankers in …