inflation from above, so that inflation tar- geting policies may not be capable of ensuring REE uniqueness. In such cases, it is … advisable to combine inflation responses with an appropriate reaction to the output gap and/or firm profitability. The negative … reaction of real activity and asset prices to inflationary shocks adds a negative force to inflation responses that counteracts …

Monetary policy tools, including money supply and interest rate, are the most popular instruments to control inflation … interest rate, will reduce inflation by reducing aggregate demand in an economy. However, monetary policy could be … reducing aggregate supply in the economy. If tight monetary policy is used to reduce this cost push inflation, the cost side …

Monetary policy tools, including money supply and interest rate, are the most popular instruments to control inflation … interest rate, will reduce inflation by reducing aggregate demand in an economy. However, monetary policy could be … reducing aggregate supply in the economy. If tight monetary policy is used to reduce this cost push inflation, the cost side …

response to inflation in the central bank policy rule yield the lowest welfare losses. The findings emphasize the importance of …

If firms borrow working capital to finance production, then nominal interest rates have a direct influence on inflation … empirical importance in explaining inflation dynamics in the US and in the euro area. …

The monetary policy rules used by central banks these days are based on the assumption that inflation could be reduced … the relationship between interest rate and inflation should be positive. His view was based on simple logic, ‘interest is … a part of cost, and therefore, the increase in interest rate should increase inflation by increasing cost of production …