regime during a deceleration in economic activity and with headline and core inflation remaining well below the FOMC's 2 … percent inflation target. Moreover, both short- and long-term inflation expectations were drifting lower. These developments …

central bank's inflation response necessary to rule out the possibility of self-fulfilling inflation expectations. This paper … their inputs (i.e. Markov-Switching) then inflation targeting interest rate rules are often found to result in indeterminacy … rule can alleviate this indeterminacy and anchor inflation expectations. Whether the money growth target should be a …

Since 1991, the Bank of Canada has had an inflation‐targeting (IT) framework established by a joint agreement between … inflation‐control agreement. This discussion paper summarizes some interim results from Bank staff analysis done for the August … analysis later in 2021. The core of the current framework-the 2 percent inflation target-has remained unchanged since 1995 …

This paper reports graphical and statistical evidence that the inflation targeting regimes in Canada and the UK - but … tracks the path implied by the inflation target, and the time-series predictions of the "bygones-are-bygones" version of … inflation targeting are rejected by the data in favor of those implied by price-level targeting. These results indicate …

changes. Lastly, the magnitude of response of inflation to monetary policy depends on the level of credibility. This suggests …

This paper first shows that the forecast error incurred when assuming that future inflation will be equal to the … inflation target announced by the central bank is typically at least as small and often smaller than forecast errors of model …-based and published inflation forecasts. It then shows that there are substantial benefits in having rule-of-thumb agents who …

The shift to inflation targeting has contributed to the relatively low inflation observed in some emerging market … policy and its impact on real and financial sectors, it does not preclude the use of inflation targeting as a policy regime …

banks set interest rate targets, and do not even pretend to control money supplies. How is inflation determined under an …We finally have a complete theory of inflation under interest rate targets, that mirrors the long-run neutrality and … frictionless limit of monetary theory: Inflation can be stable and determinate under interest rate targets, including a k percent …