I compare nominal GDP level targeting to flexible inflation targeting in a small New Keynesian model subject to the …, for a standard calibration, inflation targeting under discretion leaves the economy open to a deflationary trap. Nominal … level rule. These result suggest that inflation targeting should not be ditched. Still, it can be improved significantly, by …

estate, as well as the costs of public goods to develop alternative inflation measures in Germany since the introduction of … the euro. Real economic growth as well as median wage developments are reexamined in light of the alternative inflation …

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 …

Foreign price shocks have significant effects on functional income distribution and on inflation inequality. By ….g. food prices for low-wage workers). Based on the conflicting-claims inflation literature, we propose a new extension to this … with an inflation-targeting regime. We investigate the impacts of foreign price shocks on income and inflation inequality …

This paper studies monetary policy rules in a small open economy with Inflation Targeting, incomplete pass-through and …

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. …

This paper reviews South Africa's monetary policy since 2007 and makes recommendations towards improving the inflation …-targeting framework currently in place. Following a surge in inflation into double digits in 2007/08, the South African Reserve Bank … managed to guide inflation in line with the 3-6 per cent target band. Estimates of South Africa's potential output underwent …

rate both matter for determining inflation and economic activity. …

inflation and deflationary biases in inflation expectations. In a model with an occasionally binding zero-lower-bound constraint …, we show that an inflation bias as well as a deflationary bias exist as a steady-state outcome. We assess the predictions … of this model using unique individual-level inflation expectations data across nine countries that allow for a direct …

This study examines whether central banks can combat inflation that is caused by rising energy prices. By using a high …