-run trade-offs between output and inflation: lower trend inflation flattens the Phillips curve and decreases steady-state output … by increasing markups. We show that the aggregator reduces both the steady-state welfare cost of higher trend inflation … and the inflation-related weight in a model-based welfare function for higher trend inflation. Consequently, optimal trend …

While two strands of the literature suggest that PPI inflation, in addition to or instead of CPI inflation, should be a … temporary, the standard monetary policy rule that does not target the PPI inflation may have become increasingly problematic. …

In this paper we present supporting evidence of the existence of heterogeneity in inflation dynamics across euro area … significant inertial (backward looking) behavior in inflation in four of them, while inflation in Germany has a dominant forward … looking component. We then present an optimizing agent model for the area emphasizing the heterogeneity in inflation …

In recent years, activist monetary policy rules responding to inflation and the level of economic activity have been … advanced as a means of achieving effective output stabilization without inflation. Advocates of such policies suggest that … capacity as the primary underlying cause of the 1970s inflation and suggests that apparent differences in the framework …

a rationale for the practice of inflation zone targeting. We show that the presence of either zone-quadratic preferences … or a zone-linear relationship between inflation and economic activity provides strong incentives to deviate from … structure and relative preference towards economic stability in determining the width of the implied targeted inflation zone …

Producing and revealing inflation forecasts is believed to be the best way of implementing a forward-looking monetary … policy. The article focuses on inflation forecast targeting (IFT) at the Czech National Bank (CNB) in terms of its efficiency … in shaping consumers' inflation expectations. The goal of the study is to verify accuracy of the inflation forecasts, and …

Modern monetary policy focuses on credibility and shaping consumers' inflation expectations. According to the concept … of inflation forecast targeting (IFT), inflation forecasts play a crucial role in the instrument rate decision …-making process and may be a specific intermediate target. The aim of the study is to analyse the credibility of inflation forecasts …

inflation and monetary policy-relevant inflation measure (MPRI) in the central banks of Sweden, Norway and Czech Republic. The … analysis refers to the possibility of using core and MPRI inflation projections as a tool (intermediate goal) for the … implementation of Svensson's concept of optimal inflation forecast targeting strategy (IFT) and determines what the chosen central …

-term inflation target to help anchor expectations. This paper aims to document how much the release of the forecasts of one major … central bank, the Bank of Japan (BOJ), has influenced private sector expectations of inflation, and whether the degree of … influence depends to any degree on the adoption of an inflation target (IT). Consistent with earlier studies, we find the …