Headline inflation in most industrialized countries, the US in particular, has been shown to be mean reverting to core … inflation in the medium term, whilst at the same time the pass-through of exogenous commodity price shocks from the headline to … volatility for the latter and creates a drive for investing in commodities as a hedge for the spread between both inflation …

What are the implications of targeting different measures of inflation? We extend a basic theoretical framework of … optimal monetary policy under inflation targeting to include several components of CPI inflation ratio, and analyze the … implications of using different measures of inflation as target variable core inflation, CPI excluding interest rates, and headline …

This paper provides an overview of statistical measurement issues relating to alternative measures of core inflation …, and the criteria for choosing among them. The approaches to measurement considered include exclusion-based methods …

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

In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize … is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting … headline inflation, assigns zero weight to import prices. …