regime. Notably, the estimate of the inflation coefficient satisfies the Taylor principle in both regimes. These results are …

, 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. …

indicator for future inflation, therefore being only instrumental (to stabilize inflation) rather than important per se. …

interacting: central bank responds less aggressively to inflation when fiscal authority puts less attention on debt stabilisation …

area (EA) and the US. The estimations show that until mid-2014 the ECB's response to inflation was more forceful when … inflation was above 2% than below 2%. Since then, the ECB's policy can be characterised as symmetric, and we quantify the … bound and a low neutral real rate, and find that it prescribes a stronger response to inflation and the output gap when …

This paper proposes a new method of estimating the Taylor rule with a time-varying implicit inflation target and a time …-varying natural rate of interest. The inflation target and the natural rate are modeled as random walks and are estimated using …