Persistent inflation and slow stabilization are usually the result of policy accommodation resorted to in an attempt to … avoid the recessionary costs of a sharp reduction of inflation. This paper reviews three explanations for why policymakers … despite their dislike of inflation may nevertheless choose to adopt accommodative policies. It emphasizes the role of …

Inflation targeting is strictly suboptimal when economic actors have incomplete information about the state of the … ask what monetary policy rule is optimal. In contrast to sticky price or sticky information models, inflation and price …

frameworks that are associated with better anchored inflation expectations and more stable inflation outcomes. Despite this …

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 …

We study asymmetric inflation effects of both conventional and unconventional monetary policy in the euro area during …

Inflation in advanced economies is low by historical standards but there is no threat of deflation. Slower economic … growth is caused by supply-side constraints rather than low inflation. Below-the-target inflation does not damage the … reputation of central banks. Thus, central banks should not try to bring inflation back to the targeted level of 2%. Rather, they …