Most emerging market central banks have adopted inflation targeting as their monetary policy system. The heart of … inflation targeting system is inflation expectations. The success of a central bank in achieving targets depends on to the … extent to which inflation expectations are formed by the announced targets. As the credibility of the central bank increases …

credibility a pegged exchange rate regime yields a lower loss compared to an inflation targeting policy, even if this policy … for a policy-maker to adopt inflation targeting over a strict exchange rate targeting regime. Full credibility is not a … precondition, but exposure to foreign and financial shocks and high steady state inflation make joining the EMU relatively more …

In this paper I evaluate inflation targeting for ten countries. The evaluation is based on unconditional as well as … conditional measures of the variance of inflation around target. With strict inflation targeting, expectations of the future … Price Index (CPI) when calculating the inflation rate, I find that the null hypothesis can be rejected for six of ten …

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 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 purpose of this paper is to answer the question of whether the switching to the Inflation Targeting (IT) regime is … criterion. That is, the practical experience of the inflation targeters, and the efficiency of Monetary Targeting Regime (MTR … down individuals expectations about the future path of inflation in Egypt. Taking into account that IT regime is a way to …

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 …

inflation and its target, and the gap between output and its potential. Under 'the opportunistic approach to disinflation' a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output … stabilization when inflation is close to its target, allowing supply shocks and unforeseen fluctuations in aggregate demand to move …