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

for establishing the other building blocks of an inflation targeting framework. It argues that strengthening the … effectiveness of the current monetary policy framework will facilitate the adoption of inflation targeting over time. …

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 …

considers inflation targeting in a small open economy. This economy is characterized by imperfect competition and short … inflation targeting on output and inflation volatility depend crucially on the exchange rate regime and the inflation index … nominal shocks the reverse is true. Second, domestically generated inflation targeting is preferable to CPI inflation …

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 …

follows a rule that can be characterized as inflation targeting with a high degree of interest rate smoothing. During …

This paper proposes a new method of estimating the Taylor rule with a time-varying implicit inflation target and a time …-varying natural rate of interest. The inflation target and the natural rate are modeled as random walks and are estimated using …