Most emerging market central banks have adopted inflation targeting as their monetary policy system. The heart of … inflation targeting system is inflation expectations. The success of a central bank in achieving targets depends on to the … extent to which inflation expectations are formed by the announced targets. As the credibility of the central bank increases …

I compare nominal GDP level targeting to flexible inflation targeting in a small New Keynesian model subject to the …, for a standard calibration, inflation targeting under discretion leaves the economy open to a deflationary trap. Nominal … level rule. These result suggest that inflation targeting should not be ditched. Still, it can be improved significantly, by …

adjustment rule, under alternative inflation targets, in terms of output losses in a macroeconomic model, using European Union … credibility, and that a positive inflation target, as opposed to zero inflation, leads to higher and less volatile output. These … countries supports country-specific flexible inflation targeting …

I compare nominal GDP level targeting to flexible inflation targeting in a small New Keynesian model subject to the …, for a standard calibration, inflation targeting under discretion leaves the economy open to a deflationary trap. Nominal … level rule. These results suggest that inflation targeting should not be ditched. Still, it can be improved significantly …

switch from exchange rate to inflation targeting and adoption of a policy rule for the use of petroleum revenues. We find … that the long-run means of CPI and core inflation rates declined significantly until the mid-1990s and have since then … remained close to the inflation target of 2.5% from 2001 onwards. The persistence in especially CPI inflation has fallen during …

estate, as well as the costs of public goods to develop alternative inflation measures in Germany since the introduction of … the euro. Real economic growth as well as median wage developments are reexamined in light of the alternative inflation …

This working paper examines the question of whether inflation targeting monetary policy is an appropriate framework for … sub-Saharan African countries. The paper presents an overview of inflation targeting, reviews the justification for the … regime, and summarizes some major critiques.Monetary policy responses to inflation depend on the source of inflationary …

We address this question by examining the conditional dynamics of inflation and output growth in response to markup … shocks for 14 industrialized countries. Markup shocks create a trade-off between output gap and inflation stabilization … purposes, and the theory predicts that conditional on such shocks output growth should be more volatile than inflation in …

particular the aim of price stability, understood as low and stable inflation. Design/Research methods: The article was prepared … inflation reduces uncertainty about future price developments. This facilitates decision-making for companies concerning …

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 …