The inflation targeting policy, which is adopted in a lot of countries in recent years, has been introduced with a band … target in most countries. However, in the many theoretical analysis, the target of the inflation rate is assumed to be a … few. In this paper, to treat the above-problem, we make the inflation band targeting model which is based on Barro and …

Brazil has experienced crucial changes in its inflation process since the adoption of inflation targeting in mid 1999 …. This article addresses changes in the analytical framework employed to track the inflation dynamics, specifically the … relevance of an explicit target for inflation. A New-Keynesian Phillips curve (NKPC) is derived incorporating indexation not …

the economy will stick at a high inflation equilibrium. Walsh (1995) proposed a way round this - for the government to … delegate monetary policy to an independent central bank working under a contract defined in terms of inflation. Walsh argued … that the inflation bias in policy could be eliminated without interfering with the government's ability to stabilise output …

This paper examines the interaction of core inflation and monetary policy. Interest in core has grown because of … inflation targeting. Core inflation is defined in numerous ways giving rise to many potential measures; I define core inflation … as the best forecaster of inflation. A cross-country study finds that core inflation differs across monetary regimes. A …

This paper aims at assessing the impact of inflation targeting on actual inflation when considering inflation … perceptions together with interrelated inflation expectations, modifying the seminal papers of Barro and Gordon (1983a and 1983b …). The modeling of inflation perceptions and of inflation expectations follows suggestions of recent literature, but also …

The rise in inflation in 2021-22 sparked a growing literature and debate over the causes of the surge as well as the … near- and medium-term path for inflation. This review offers three key messages. First, the exceptional nature of shocks … resulting from the COVID-19 pandemic and geopolitical events drove the surge in inflation and the initial underestimation by …

We construct an empirical test of whether the anticipation of adoption of inflation targeting affects the inflation … rate. We observe that most of the central banks adopt the regime after first achieving significant disinflation. With pre-inflation …-in-difference framework. We find that inflation targeting is successful in locking-in already low inflation rather than reducing high …

Within a standard model of monetary delegation we show thta the optimal linear inflation contract performs strictly … better than the optimal inflation target when there is uncertainty about the central banker's preferences. The optimal … combination of a contract and a target performs best and eliminates the inflation bias and any variability not associated with …

. Seigniorage provides revenue for the government but results in inflation-bias. We analyze three mechanism designed to eliminate … some or all of the biases in monetary policy: an inflation performance contract, inflation target (both contingent on the … stock of debt), and a zero-inflation rule. The performance contract and inflation target result in higher interest rate …