focusing inflation targeting that is implemented by a Taylor type rule, a rule that in equilibrium is reflected in the exchange … monetary can't deliver a stationary domestic price level. Another feature in the data for inflation targeting countries that is … direction from PPP in response to an 'inflation' shock - the 'bad news god news' result of Clarida -Waldman (2008;2014). This is …

optimal policy is a output and inflation. In an open economy, the optimal rule changes in two ways. First, the policy … instrument is a Conditions Index the exchange rate. Second, on the right side of the rule, inflation is replaced by filters out … the transitory effects of exchange-rate movements. The model also implies that pure inflation targeting is dangerous in an …

focusing inflation targeting that is implemented by a Taylor type rule, a rule that in equilibrium is reflected in the exchange … monetary can't deliver a stationary domestic price level. Another feature in the data for inflation targeting countries that is … direction from PPP in response to an 'inflation' shock - the 'bad news god news' result of Clarida -Waldman (2008;2014). This is …

data are compared under the different rules. It is found that an inflation-forecast-based rule (IFB), i.e., one that reacts … to deviations of expected inflation from target, performs well. Adding a separate response to the level of the real …

In open economy, a choice can be made between two measures of inflation for use as a target variable: CPI inflation or … domestic inflation. This paper considers flexible and strict inflation targeting strategies and explores the circumstances … under which a domestic inflation target is preferred to a CPI inflation target. This is done from the perspectives of the …