interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

and disadvantages of the various output gap measures. First, I examine the usefulness of the output gap for inflation …

implications for monetary policy as the central bank has to decide which inflation rate to target. Our results demonstrate that …

monetary policy. Since expectations affect demand, our theory shows economic fluctuations are mostly driven by varying demand … inflation volatility to zero. (iii) The statistical Phillips Curve changes substantially with policy instruments and activist … inflation hence the aggregate price level appears 'sticky' with respect to money shocks. (v) Discretion in monetary policy adds …

monetary targets, the SNB was able to reduce the inflation trend to low levels. However, it was less successful in preserving …-emptive policy stance. At the end of 1999, the SNB abandoned monetary targeting in favour of an approach based on inflation forecasts. …