with a lag of at least three quarters, with inflation taking seven quarters to respond. Inflation is inertial and … persistent when it sets in, irrespective of the source. Exchange rate pass-through to domestic inflation is low. Inflation turns …

In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating …-maximizing central bank should adopt flexible headline inflation targeting a target for headline CPI inflation with some weight on the …

-looking specifications, especially when targeting core components of GDP and inflation, and combine the best parts of efficiency and …

inflation combined with a free float seems to be the ultimate option. The paper shows how to design and operationalize such a …

This paper examines inflation dynamics in the United States since 1960, with a particular focus on the Great Recession …. A puzzle emerges when Phillips curves estimated over 1960-2007 are ussed to predice inflation over 2008-2010: inflation … by theories of costly price adjustment: we measure core inflation with the median CPI inflation rate, and we allow the …

inflation forecast targeting regime in Sri Lanka. The FPAS model provides a relatively good forecast for inflation and a … framework to evaluate policy trade-offs. The model simulations suggest that an open-economy inflation targeting rule can reduce … could aim to target a broad inflation range initially due to its susceptibility supply-side shocks while enhancing exchange …

this paper is that strict headline inflation targeting could be outperformed by sectoral inflation targeting, output gap … inflation stabilization, the two most common policies in modern central banks' practices. For practical monetary policy design … which core inflation targeting turns out to be the optimal choice in the context of implementable Taylor rules. …

-side flexibility are indeed the main channel through which monetary policy lowers the volatility of inflation and, even more …