Inflation in advanced economies is low by historical standards but there is no threat of deflation. Slower economic … growth is caused by supply-side constraints rather than low inflation. Below-the-target inflation does not damage the … reputation of central banks. Thus, central banks should not try to bring inflation back to the targeted level of 2%. Rather, they …

Although there is a well-established theoretical literature that links central bank (CB) reputation with inflation … tests the impact of reputation on inflation-unemployment performance using a novel set of data on CB reputation - an annual … reputation is a significant determinant of inflation: the results of an FE panel and Arellano-Bond difference GMM model show that …

surprises generate an information effect which is endogenous to the size of the policy surprise. …

an information effect and increase their inflation expectations by 0.57%. We also document three stylized facts … policy shock and decrease their inflation expectations 12 months ahead by -0.25%. With no credibility, they interpret it as …: noneffective inflation target tolerance intervals during periods of low credibility, a loss of credibility has a long …

inflation and output stabilisation mandates of the CBN. The study also finds that inclusion of more instruments in the CBN … therefore emphasises the difficulty of the CBN to effectively manage inflation and output stabilisation simultaneously, which …

bankers to explain their monetary policy decisions in detail and for them to publish inflation forecasts. This leads to the … question of how central bank transparency is entangled with price stability and inflation volatility. A plethora of studies … transparency leads to lower inflation, others concluded that openness of central banks results in higher prices. Conversely, there …

examines the usefulness of these estimates for inflation forecasting. Over this period, we find that the Federal Reserve … estimation techniques. In contrast to previous work, we also find no deterioration in forecast performance when inflation …

independence and inflation. Making use of data on the evolution of central bank independence over time and controlling for possible … country's inflation performance. Examining a cross-section of up to 69 countries, we are able to show that granting a central … bank more autonomy does not necessarily lead to better inflation performance. To lower inflation by increasing independence …

variables with biased in-formation. …

Empirical evidence suggests that considerable differentials in inflation rates exist across households. This paper … investigates how central banks should react to household inflation heterogeneity in a tractable New Keynesian model. We include two … households that differ in their consumer price inflation rates after adverse shocks. The central bank reacts to either an average …