In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize … is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting … headline inflation, assigns zero weight to import prices. …

coincident indicator of HICP inflation. Assessing the robustness of our core inflation measure we carefully conclude that it …Against the difficult background of analysing aggregated data in this paper core inflation in the euro area is … estimated by means of the structural vector autoregressive approach. We demonstrate that the HICP sometimes seems to be a …

This paper studies monetary policy rules in a small open economy with Inflation Targeting, incomplete pass-through and …

Our paper studies the relationship between money growth and consumer price inflation in the euro area using wavelet … analysis. Wavelet analysis allows to account for variations in the money growth-inflation relationship both across the … frequency spectrum and across time. We find evidence of strong comovements between money growth and inflation at low frequencies …