According to the game-theoretic model of monetary policy, inflation is the consequence of time-inconsistent behavior of … the monetary authority. The inflation bias can be eased by handing over the responsibility for monetary policy to an … sample of 11 OECD countries. -- Central Banking ; Conservatism ; Central Bank Independence ; Inflation …

positive at the onset of the episode, through promising higher inflation rates in future periods. We embed our theory into a … commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and …

. We use a microfounded New Keynesian model of a monetary union which incorporates persistence in inflation, and examine … non-cooperative interactions of fiscal and monetary authorities. We find that particularly when inflation is persistent …

The purpose of this short paper is to show that inflation “band” targeting can solve the “time inconsistency” problem … that exists under inflation “point” targeting by setting a relevant target range. Moreover, we show that inflation band … natural levels, by setting the inflation rate within a target range and creating unexpected inflation. 2) It can mitigate …

We argue that the period of low inflation has come to an end based on six structural factors, which define the new … inflationary environment: [...] How high will inflation rise? How long will the new inflationary environment last? How challenging …, progressing slowly, thereby contributing to a longer lasting energy-triggered inflation. The highest risk will be an energy …