A central tenet of inflation targeting is that establishing and maintaining well-anchored inflation expectations are … essential. In this paper, we reexamine the role of key elements of the inflation targeting framework towards this end, in the … that incorporates three key characteristics of inflation targeting: transparency, commitment to maintaining price stability …

uncertainty: such rules respond to the one-year ahead inflation forecast and to the current output gap, and incorporate a …

rule and targets a zero inflation rate, there is a significant increase in the variability of output but not inflation …

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

perform poorly when knowledge is imperfect. In particular, policies that fail to maintain tight control over inflation are … prone to episodes in which the public's expectations of inflation become uncoupled from the policy objective and stagflation … effective communication of a central bank's inflation objective and of continued vigilance against inflation in anchoring …

We propose a new approach to assessing the anchoring of inflation expectations using "strategic surveys". Namely, we … measure households' revisions in long-run inflation expectations after they are presented with different economic scenarios. A … key advantage of this approach is that it provides a causal interpretation in terms of how inflation events affect long …

output-inflation volatility frontier of each model for alternative specifications of the interest rate rule, subject to an …-difference of the federal funds rate responds to the current output gap and the deviation of the one-year average inflation rate … complicated rules (i.e., rules that respond to a larger number of variables and/or additional lags of output and inflation …