rate both matter for determining inflation and economic activity. …

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 …

, effective revenue ceilings induce an increase in deficit, debt and inflation. Under many scenarios, including recurrent adverse …

responds to inflation and output volatility, especially during economic crises. This framework offers a promising alternative …

response of the interest rate to changes in sectoral inflation due to standard supply shocks, conditional on a given … environmental policy. We then compare the performance of a nonstandard monetary rule with sectoral inflation targets to that of a … sectors. Second, compared with a standard Taylor rule targeting aggregate inflation, a monetary policy rule with asymmetric …

with inflation performance. …

Excessive inflation is usually attributed to the lack of central bank's credibility. In this context, most of the …. Indeed, the degree of central bank's transparency influences the effectiveness of its policy to stabilize inflation in terms …

relationship between uncertainty of inflation persistence and optimal monetary policy and discusses the consequences of the recent … Blanchard proposal to implement a higher inflation target in the light of parameter uncertainty. Furthermore, it provides …-orthogonal parameter uncertainty. -- inflation persistence ; parameter uncertainty ; inflation target ; dynamic programming …

inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions Although an … inflation target eliminates this inflation bias, it creates a conflict between monetary policy and discretionary fiscal policy …