-)establish credibility, optimal monetary policy under discretion is shown to set higher interest rates today if average inflation exceeded … the target in the past. Moreover, policy responds non-linearly to past inflation gaps. This is reflected in an additional …

This paper offers several contributions to actual research and discussion on monetary policy. It clarifies the … relationship between uncertainty of inflation persistence and optimal monetary policy and discusses the consequences of the recent …

policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We … plausible on microeconomic grounds, the Nash equilibrium between firms and the policy maker is characterised by zero indexation …

Non-coordinated monetary policy is analysed in a stochastic two-country general equilibrium model. Non …-coordinated equilibria are compared in two cases: one where policy is set in terms of state-contingent money supply rules and one where … policy is set in terms of state-contingent nominal interest rate rules. In general the non-coordinated equilibrium differs …

approach. The optimum monetary-policy rules of the supranational central bank are derived within the Barro-Gordon framework … conjuncture with labour migration, monetary policy by a small country within the group of national presidents may negatively …

: transparency of actual monetary policy and the question of who bears final responsibility for monetary policy. The paper shows that …

price setters to infer the central bank's future policy intentions, thereby making current inflation more responsive to … policy actions. This induces the central bank to pay more attention to inflation rather than output gap stabilization. Then …, transparency may be disadvantageous. It may actually be a policy-distorting straitjacket if the central bank enjoys low …

This paper analyses the implications of cost-push shocks for the optimal choice of monetary policy target in an two … shown that the fully optimal coordinated policy can be supported by independent national monetary authorities following a … policy of flexible inflation targeting. A number of simple (but non-optimal) targeting rules are compared. Strict producer …

finding the optimal policy as well as solutions for arbitrary policy functions. This allows us to compute and plot consistent …