There is a considerable academic literature on the relationship between Central Bank independence and inflation but the … issue of Central Bank accountability and its effect of inflation performance has received very little attention. This paper … inflation performance. This follows because, increased uncertainty will cause the public to raise their average inflation …

relationship between uncertainty of inflation persistence and optimal monetary policy and discusses the consequences of the recent … Blanchard proposal to implement a higher inflation target in the light of parameter uncertainty. Furthermore, it provides …-orthogonal parameter uncertainty. -- inflation persistence ; parameter uncertainty ; inflation target ; dynamic programming …

We analyse the interaction between private agents? uncertainty about inflation target and the central bank's data … uncertainty. In our model, private agents update their perceived inflation target and the central bank estimates unobservable … economic shocks as well as the perceived inflation target. Under those two uncertainties, the learning process of both private …

This paper investigates the macroeconomic risks associated with undesirably low inflation using a medium-sized New … Keynesian model. We consider different causes of persistently low inflation, including a downward shift in long-run inflation … persistently low inflation depend crucially on its underlying cause, as well as on the extent to which monetary policy is …

It is well known that the canonical New Keynesian model cannot produce inflation inertia observed in real data. The … purpose of this research is to investigate expectation formation process as a potential source of inflation inertia. We …-looking behavior of price-setters, but from the expectation formation process of the private agents. In this sense, the inflation …

relationship between uncertainty of inflation persistence and optimal monetary policy and discusses the consequences of the recent … Blanchard proposal to implement a higher inflation target in the light of parameter uncertainty. Furthermore, it provides …

model averaging in policy design. Interestingly, a simple difference rule with the same coefficients on inflation and output …

uncertainty of inflation and GDP growth forecasts into an otherwise standard New Keynesian model. We show that certainty … react significantly to inflation forecast uncertainty by reducing their policy rates in times of higher inflation …

in their inflation projections. We compare the effects of point and density projections in a learning …-to-forecast laboratory experiment where participants' aggregated expectations about one- and two-period-ahead inflation influence … macroeconomic dynamics. Precise point projections are more effective at managing inflation expectations. Point projections reduce …