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 … persistent cost-push pressures in the economy leading to a significant deterioration in the inflation - output gap trade …

A key issue in the renewal of the inflation-control agreement is the question of the appropriate level of the inflation … financial crisis, the effective lower bound (ELB) is more likely to be binding in the future if inflation targets remain at 2 … per cent. This has led some to argue that the inflation target should be raised to reduce the incidence of ELB episodes …

This paper examines the global drivers of inflation in 55 countries over the 1970-2022 period. We estimate a Factor … domestic shocks. We report three main results. First, global shocks have explained about 26 percent of inflation variation in a … typical economy. Oil price shocks accounted for only about 4 percent of inflation variation, but they had a statistically …