gap coefficient is higher in the recessionary regime than in the normal one. The estimate of the inflation coefficient …

regime. Notably, the estimate of the inflation coefficient satisfies the Taylor principle in both regimes. These results are …

gap coefficient is higher in the recessionary regime than in the normal one. The estimate of the inflation coefficient …

adoption of the inflation targeting regime in Brazil. The BCB`s reaction function has some features that corroborate the thesis … floor; and b) is inattentive to the state of the economy (the inflation and output gaps), and expresses an excessive …

inflation as one component of future real wages. This paper scrutinizes whether countries in CEE that officially announce an … inflation target are tempted to act time-inconsistently and switch from the announced inflation target to an exchange rate … target in order to sustain higher output via surprise inflation. If market participants discover the time-inconsistency, they …

either the inflation or the output gap varies in terms of magnitude and/or statistical significance across the high and low … inflation regimes in all countries. In particular, the exchange rate has an impact in the former but not in the latter regime …

either the inflation or the output gap varies in terms of magnitude and/or statistical significance across the high and low … inflation regimes in all countries. In particular, the exchange rate has an impact in the former but not in the latter regime …

In this paper we systematically evaluate how central banks respond to inflation deviations from target. We present a … stylized New Keynesian model in which agents' inflation expectations are sensitive to inflation deviations from target. To (re …-)establish credibility, optimal monetary policy under discretion is shown to set higher interest rates today if average inflation exceeded …

macroeconomic surprises. Leveraging exogenous variations in inflation and industrial production (IP) surprises around Office for … National Statistics releases, we estimate gilt yield responsiveness to inflation and real activity, revealing how markets … expect the BoE to react to macroeconomic changes. Markets generally understand the UK flexible inflation-targeting regime …