, and time-varying trend inflation using post-WWII U.S. data. The model embedding the stochastic target performs better in … policy aggressiveness and inflation gap persistence. …

This paper estimates regime-switching monetary policy rules featuring trend inflation using post-WWII US data. We find … evidence in favour of regime shifts and time-variation of the inflation target. We also find a drop in the inflation gap … upon a feedback mechanism running from the monetary policy stance to the inflation gap. Our results support the stochastic …

inflation changes, that is the Lucas critique applies, then inflation is not superexogenous for the parameters of the Taylor … the volatility of inflation (captured by a discrete heteroskedastic variance model of regime shifts) reduced by almost 50 … percent, we fail to reject the null that inflation is superexogenous to the parameters of the Taylor rule. This implies that …

-makers are allowed to weight differently positive and negative deviations of inflation and output from the target values. Reduced … expansions of the same magnitude. This asymmetry is shown to induce an average inflation bias of 1.11% that appears to have … substantially contributed to the great inflation of the 1960s and 1970s …

This paper studies monetary policy rules in a small open economy with Inflation Targeting, incomplete pass-through and …

either the inflation or the output gap varies in terms of magnitude and/or statistical significance across the high and low … inflation regimes in all countries. In particular, the exchange rate has an impact in the former but not in the latter regime …

either the inflation or the output gap varies in terms of magnitude and/or statistical significance across the high and low … inflation regimes in all countries. In particular, the exchange rate has an impact in the former but not in the latter regime …

adjustment rule, under alternative inflation targets, in terms of output losses in a macroeconomic model, using European Union … credibility, and that a positive inflation target, as opposed to zero inflation, leads to higher and less volatile output. These … countries supports country-specific flexible inflation targeting …