shock. We find that flexible inflation targeting regime using interest rate rules (IRRs) with floating exchange rates is …-DSGE model, we show that inflation targeting regime using exchange rate rules (ERRs) reduces welfare losses significantly …

structure reflects changing expectations of future yields and inflation. This analysis shows that the presence of time … less than five years. By contrast, variations in inflation expected over the next two to three years are very accurately … term structures closely track changing expectations regarding future nominal and real yields but not future inflation …

inflation risk. We calculate the term structure of inflation uncertainty in New Keynesian models when the monetary authority … achieves equilibria with substantially lower long-run inflation risk. With either sticky prices or sticky wages, a price path … target reduces the variance of inflation by an order of magnitude more than it increases the variability of the output gap …

that it experiences high consumer price inflation. However, no research has been done on exactly how much of these critical … goods a country needs to be able to produce to keep inflation low and manageable. In this paper, I use an empirical risk … to show that a country can significantly reduce it chance of experiencing medium inflation and virtually eliminate the …

We examine how the interaction between monetary policy and macroeconomic conditions affects inflation uncertainty in the … long-term. The unobservable inflation uncertainty is quantified by means of the slowly evolving long-term variance component … of inflation in the framework of the Spline-GARCH model (Engle and Rangel, 2008). For a cross-section of 13 developed …

performs better than an explicit inflation target as proposed by Svensson. The reason is that an inflation target produces a … higher variance of inflation. It is also shown that it is optimal to offer a linear inflation contract that does not depend …