the Taylor rule is beneficial if the central bank aims at optimally stabilizing inflation and output gap variability under … discretion. Placing a weight on deviations from a simple Taylor rule increases the overall relative weight of inflation …

a unified framework that incorpo- rates regime switching both in shock variances and in the inflation target. We propose … the inflation target are not the main driving force of high inflation in the 1970s. The model that best fits the U.S. time …

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 …

. Our analysis improves upon existing work by endogenising the volatility of both output and inflation. Improved …

adopt flexible inflation targeting as part of a broad reform package that includes improved financial regulation and fiscal …