This paper considers a central bank with a zero inflation target and a fiscal authority with a differing objective …. Situations in which the fiscal authority is able to exploit the central bank's commitment to zero inflation sre examined. …

long run Phillips curve recorded -0.75 in Sweden and -0.23 in the United States. While the average inflation rate in the … United States was very close to its targeted level, the average inflation rate in Sweden was 0.6 per- centage points below … its targeted level over the sample period. The deviation of inflation rate from its targeted level in Sweden resulted in …

We examine whether models of inflation forecast targeting are consistent with the observed behaviour of the central … paths of variables targeted by the central bank, in particular inflation and the output gap. We estimate various moment … examine the extent to which and the manner in which these central banks successfully balance inflation and output objectives …

Policy rules that are consistent with inflation targeting are examined in a small macroeconometric model of the US … imply implicit instrument rules, may be closer to actual operating procedures of inflation-targeting central banks. WE find … that inflation forecasts are central for good policy rules under inflation targeting. Some simple instrument and targeting …

The paper extends previous analysis of closed-economy inflation targeting to a small open economy with forward … for monetary policy. The paper compares targeting of CPI and domestic inflation, strict and flexible inflation targeting …, and inflation-targeting reaction functions and the Talyor rule. The optimal monetary policy response to several different …