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 …

Controlling inflation is among the most important objectives of economic policy. By maintaining price stability, policy … allocation of resources, thereby raising productivity. This volume focuses on understanding the causes of the Great Inflation of … the 1970s and ’80s, which saw rising inflation in many nations, and which propelled interest rates across the developing …

We study the effects of inflation in models with various trading frictions. The framework is related to recent search … model, under posting the cost of inflation is similar to previous estimates, around 1% of consumption. Under bargaining, it … is considerably bigger, between 3% and 5%. Under price taking, the cost of inflation depends on parameters, but tends to …

investigates to what extent the quality of eligible collateral is able to explain inflation employing the first comprehensive … statistically significant correlation between QEC and average inflation is found. This result is robust to the use of control …

We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy … rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important … consequences for global commodity prices. We find that commodities can play a key role in affecting the relative merits of the …

We construct an empirical test of whether the anticipation of adoption of inflation targeting affects the inflation … rate. We observe that most of the central banks adopt the regime after first achieving significant disinflation. With pre-inflation …-in-difference framework. We find that inflation targeting is successful in locking-in already low inflation rather than reducing high …

We study the characteristics of inflation targeting as a shock absorber, using quarterly data for a large panel of … natural disasters. We find that inflation targeting improves macroeconomic performance following such exogenous shocks. It … lowers inflation, raises output growth, and reduces inflation and growth variability compared to alternative monetary regimes …