There is no unifying framework for evaluating core inflation measures, so we propose a methodological framework to … close this gap. It allows us to construct, evaluate, and rank core inflation measures by applying it to countries and … the usual indicator that excludes food and energy, which is the most widespread measure of core inflation among central …

political business cycles, the inflation-stabilisation dilemma is discussed along with proposed solutions in the form of central … bank independence and conservativeness, incentive contracts, and inflation targets. The final section turns to current …

In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize … is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting … headline inflation, assigns zero weight to import prices. …

The Federal Reserve's objective, namely the dovish stance, is often blamed for the Great Inflation. A popular proxy for … the former is constructed based on the inflation coefficients in estimated Taylor rules. However, for a welfare …

necessary during the pandemic. The prolonged money expansion contributed to fuel inflation during the post-recession rebound …

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 …

private sector inflation forecasts. But beyond the optimum people might: (1) start to attach too much weight to the … deteriorates the (perceived) quality of private sector inflation forecasts. Inflation then is set in a more backward looking manner … resulting in higher inflation persistence. By using a panel data set on the transparency of 100 central banks we find empirical …