responds to inflation and output volatility, especially during economic crises. This framework offers a promising alternative …

crawling peg exchange rate regimes, Colombia adopted a full-fledged inflation-targeting (IT) regime in 1999, with inflation as …

Recent empirical evidence by Fair (2002,2005) and Giordani (2003) shows that a positive inflation shock with the … Synthesis' literature. This paper reconsiders the effects of inflation shocks in a simple New Keynesian framework extended to … include wealth effects. It is demonstrated that, following an inflation shock, the decline of output coupled with passive …

experiment of the past decade, stemming from a belief of the government that higher interest rates cause higher inflation … eventually a negative coefficient on inflation in the policy rule. In such an environment, was the exchange rate still a random … walk? Was inflation anchored? Does the "standard model" suffice to explain the broad contours of macroeconomic outcomes in …

experiment of the past decade, stemming from a belief of the government that higher interest rates cause higher inflation … eventually a negative coefficient on inflation in the policy rule. In such an environment, was the exchange rate still a random … walk? Was inflation anchored? Does the “standard model” suffice to explain the broad contours of macroeconomic outcomes in …

them monetary policy shocks the Fed injected into inflation. …

uncertainty of inflation and GDP growth forecasts into an otherwise standard New Keynesian model. We show that certainty … react significantly to inflation forecast uncertainty by reducing their policy rates in times of higher inflation …

targets (inflation and output gap) are forward-looking variables in the new-Keynesian theory …