We offer a novel methodology for assessing the quality of inflation reports. In contrast to the existing literature …, which mostly evaluates the formal quality of these reports, we evaluate their economic content by comparing inflation … coding of inflation reports to describe inflation factors communicated by central banks in real time. Regarding the latter …

inflation and deflationary biases in inflation expectations. In a model with an occasionally binding zero-lower-bound constraint … of this model using unique individual-level inflation expectations data across nine countries that allow for a direct … identification of these biases. Both inflation and deflationary biases are present (and sizable) in inflation expectations of these …

In Canada, targeting the inflation rate was intended as a temporary measure on a journey to price-level stability, but … account, changing beliefs about the stability or otherwise of ongoing inflation, the capacity of a flexible exchange rate to … rate and money growth in influencing economic outcomes are emphasised. Today’s standard DSGE approach to modelling …

long run Phillips curve recorded -0.75 in Sweden and -0.23 in the United States. While the average inflation rate in the … United States was very close to its targeted level, the average inflation rate in Sweden was 0.6 per- centage points below … its targeted level over the sample period. The deviation of inflation rate from its targeted level in Sweden resulted in …

This paper estimates a New Keynesian model with trend inflation and contrasts Taylor rules featuring fixed versus time …-varying inflation target while allowing for passive monetary policy. The estimation is conducted over the Great Inflation and the Great … Moderation periods. Time-varying inflation target empirically fits better and active monetary policy prevails in both periods …

Policy implications are derived for an inflation-targeting central bank, whose credibility is endogenous and depends on … rational expectations. We find that the region of allowed policy parameters is strictly larger than under rational expectations … occur, depending on the credibility of the central bank. Deflationary spirals can be prevented with a high inflation target …

In Canada, targeting the inflation rate was intended as a temporary measure during a transition to price … following account, changing beliefs about the stability or otherwise of ongoing inflation, the capacity of a flexible exchange … unemployment rate and money growth in influencing economic outcomes are also discussed. Today's standard theoretical approach to …