This paper aims to contribute to a better understanding on how inflation targets are set. For this reason, we first … inflation targets are set; we then estimate the determinants of the level of inflation target in 19 inflation targeting … than as a point). Inflation targets are found to reflect macroeconomic fundamentals. Higher level as well as higher …

The role of the exchange rate under inflation targeting (IT) remains an unresolved issue in literature and policy … whether there is a relation between the nominal exchange rate regime and inflation performance in IT countries. We use a panel … regime that differs from a pure float entails higher or lower inflation. We use two de facto foreign exchange regime …

Under inflation targeting inflation exhibits negative serial correlation in the United Kingdom, and little or no …, inflation appears to be (nearly) purely forward-looking, so that no mechanism introducing backward-looking components is … necessary to fit the data. These results question the notion that the intrinsic inflation persistence found in post-WWII U …

countries with low inflation, the raw relationship between average inflation and the growth rate of money is tenuous at best … elasticities implied by theories of Baumol-Tobin and Miller-Orr. Finally, the sample after 1990 shows considerably less inflation … variability, worsening the fit of a one-for-one relationship between money growth and inflation, and generates a fairly low …

This paper develops a set of leading indicators of industrial production growth and consumer price inflation for the … inflation. Our findings provide evidence on the factors determining real activity and inflation in a period of disinflation and …

indicator for future inflation, therefore being only instrumental (to stabilize inflation) rather than important per se. …

This paper takes up the issue of the flexibility of inflation targeting regimes, with the specific goal of determining … whether the monetary policy of the Bank of England, which has a formal inflation target, has been any less flexible than that … of the Federal Reserve, which does not have such a target. The empirical analysis uses the speed of inflation forecast …

Since the 2001 recession, average core inflation has been below the Federal Reserve's 2% target. This deflationary bias … corrects the bias and brings inflation back on target. Adopting this asymmetric rule improves welfare and reduces the risk of …

programming problem implies that the monetary authority’s inflation target evolves as its estimated Phillips curve moves. The … authors’ estimates attribute the rise and fall of post-World War II inflation in the United States to an intricate interaction … and made it misperceive the tradeoff between inflation and unemployment. That misperception caused a sharp rise in …

of historical changes in the design of U.S. monetary policy and in the implied central-bank target for inflation …. Empirical results support a description of policy with an effective inflation target of roughly 7 percent in the 1970s. Moreover … Inflation while favouring a passive-policy description of monetary policy. FOMC transcripts provide a neglected interpretation …