This paper compares the inflation targeting framework adopted by the European Central Bank (ECB) vis-a-vis the Bank of England (BOE) and argues that the ECB's strategy does not constitute the best international practice. The definition of price stability adopted by the ECB is ambiguous and...

This paper examines how the Bank of England conducts monetary policy in practice and assesses its policy preferences. Our empirical results using monthly ex post inflation forecast suggest that pursued policy can be characterized by a nonlinear policy reaction function with a deflation bias. We...

In this paper we estimate the Reserve Bank of India's (RBI) policy response to supply shocks. In particular, we exploit an important strand of the recent literature (the new inflation bias hypothesis) to understand why the two frequently cited measures of inflation in India have persistently...