inflation-unemployment process. The results provide some evidence in favor of the Lucas critique by showing that the short …-run unemployment-inflation trade-off tends to improve in countries that are successful in providing low and stable inflation. …

Modifications to Japan's monetary policy framework will be needed as positive inflation resumes because the current … an "anti-deflation" objective to an inflation objective, complemented by a shift of monetary operations from a …

) has been to raise inflation targets to provide more room for policy rate easing during crises. This paper addresses a … different issue: the relationship between inflation and welfare. The literature is surveyed and a model is developed. A key … conclusion is that an increase in inflation targets gives rise to additional welfare costs, even after the extra room to maneuver …

Macroeconomic theory postulates that fiscal deficits cause inflation. Yet empirical research has had limited success in … incorporates two key features of the theory. Unlike previous studies, we model inflation as nonlinearly related to fiscal deficits … through the inflation tax base and estimate this relationship as intrinsically dynamic, using panel techniques that explicitly …

low long-run inflation objective, operational independence for the People's Bank of China (PBC) with formal strategic … interest rate fluctuations). We argue that anchoring monetary policy with an explicit inflation objective would be the most … reliable way for the PBC to tie down inflation expectations, and thereby enable monetary policy to make the best contribution …

This paper presents a model for Inflation Targeting under imperfect policy credibility. It modifies the conventional … time; non-linearities in the inflation equation and in the credibility generating process; and an explicit loss function …. The model highlights problems associated with the practice of setting a series of rigid near-term inflation targets. Also …

Union (WAEMU) from 1994 to 2009, this paper provides evidence of the two major channels for real effects of inflation …: inflation uncertainty and relative price variability. In line with theory and most evidence for advanced and emerging market … economies, higher inflation increases inflation uncertainty and relative price variability in all WAEMU countries. However, the …

-rate policy fits a conventional forward-looking reaction function with an inflation target of about 1 percent. The disappointing … inflation target would not have yielded a lasting improvement in performance. However, a price-targeting rule or a policy rule … that combined a higher inflation target with a more aggressive response to output would have achieved superior …