paper argues that the central bank should place a stronger emphasis on stabilizing inflation than it has, and failing to do …

output-inflation volatility frontier of each model for alternative specifications of the interest rate rule, subject to an …-difference of the federal funds rate responds to the current output gap and the deviation of the one-year average inflation rate … complicated rules (i.e., rules that respond to a larger number of variables and/or additional lags of output and inflation …

deterioration is less pronounced for rules that use forecasts of inflation rather than just contemporaneous inflation. Under the …

shock. This makes firms under-react to monetary policy actions, which increases real effects of monetary policy shocks. A … threshold vector autoregression, which incorporates instrumental variables to identify the monetary policy shock, finds that …

This paper explores the effects of central bank transparency on the performance of optimal inflation targeting rules. I …

demand channel dominates the supply channel of an inflation expectation uncertainty shock. …For monetary policy guiding inflation expectations provides an instrument to achieve price stability. However … inflation expectation uncertainty on inflation, inflation expectations and the output gap by means of a structural VAR with …