This paper examines the value of direct communication to households about inflation and the uncertainty around … inflation statistics. All types of information about inflation are effective at immediately managing inflation expectations …, with information about outlooks being more effective and more relevant than that about recent inflation and Bank targets …

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 …

uncertainty of interest rates and inflation, primarily by reducing uncertainty that is common to agents rather than disagreement … monetary policy transparency. The adoption of inflation targets and forward guidance are both associated with lower uncertainty …, although inflation targets have a stronger impact on reducing uncertainty than forward guidance. Moreover, there are …

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 …