indicate that supplementing the inflation target with a tolerance interval may be useful to enhance central bank credibility …

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 …

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 …

of the responsiveness of price inflation to that slack. Using stochastic simulations of a small-scale version of the … setting the policy rate, and substitute toward a more forceful response to inflation, is overstated. We find that a notable … response to the unemployment gap is typically beneficial, even if that gap is mismeasured. Even when the dynamics of inflation …

into a VAR model with ARCH shocks to measure the effect monetary policy uncertainty has on inflation, output growth …

In New Keynesian models favourable cost-push shocks lower inflation and increase output. Yet, when the central bank …'s inflation target is not perfectly observed these shocks turn contractionary as agents erroneously perceive a temporary reduction …

This paper analyzes how the risks of nominal and inflation-indexed Treasury bonds vary with the presence of supply and … and 2001.Q2-2019.Q4. For the 1980s calibration, volatile supply shocks raise inflation and the Fed responds by raising … predictability through habit formation preferences. Partially backward-looking inflation expectations by price-setters are important …

inflation? New measures of consumer inflation uncertainty are compared to the economic and monetary policy uncertainty indices …-run inflation, while monetary policy uncertainty is most correlated with uncertainty about long-run inflation. Both economic and … monetary policy uncertainty Granger cause inflation uncertainty. Consumer inflation uncertainty can be computed for demographic …