The remarkable stability of low domestic inflation in many countries requires explanation. In this paper, a number of … continuing low inflation, but also its coexistence with rapid growth and low real interest rates. Unfortunately, the analysis …

Recent theoretical work shows that changes in the volatility of inflation and/or unem-ployment affect equilibrium in … propositionthat the volatility of unemployment helps explain inflation outcomes suffers from a spu-rious regression problem. Once this … problem is controlled for, the evidence suggeststhat the volatility of unemployment does not help explain inflation outcomes …

impact on inflation and the economy. Thisimmediate horizon is on the order of two to three years.This orientation properly … price stabilityarticulated by Chairman Greenspan: that price stabilityexists when inflation is not a consideration in …

[...]Inflation targeting in New Zealand followed legislationthat mandated a Policy Targets Agreement (PTA)between the … elected government and the newlyindependent central bank, which resulted in a jointlydecided numerical target for inflation.[...] …

[...]Inflation targeting in Canada was not the result oflegislation. However, as in New Zealand, the inflationtarget in …

[...]Like the other countries examined, the United Kingdomadopted inflation targets after a successful disinflation …

current inflation and output, in the context of an optimizingmodel with nominal-price stickiness. Under a commitment regime …