In this paper we systematically evaluate how central banks respond to deviations from the inflation target. We present … a stylized New Keynesian model in which agents' inflation expectations are sensitive to deviations from the inflation … target. To (re-) establish credibility, monetary policy under discretion sets higher interest rates today if average …

quarters of their tenure in an effort to establish a reputation for being inflation averse. Second, we find a significantly … 1974–2008. We find, first, that newly appointed governors fight inflation more aggressively during the first four to eight … stronger reaction to inflation by newly appointed governors working within monetary policy frameworks comprised of an at least …

quarters of their tenure in an effort to establish a reputation for being inflation averse. Second, we find a significantly … partly independent central bank and an explicit nominal anchor. -- Central bank governors ; credibility ; inflation … 1974-2008. We find, first, that newly appointed governors fight inflation more aggressively during the first four to eight …

rate both matter for determining inflation and economic activity. …

by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …

This paper presents a model that pictures how inflation is determined in a decentralized market process where prices … setters of sequential contracts. An important property of the model is that inflation thus can be explained without any … reference to the quantity of money.Following up the finding that inflation is determined in a coordination game, it is …

We develop a model that can explain the evolution of trend inflation in the United States in the three decades before … inflation arises endogenously and has these determinants: the strength with which the central bank responds to inflation, the … degree of uncertainty about monetary policy perceived by the private sector, and, if it exists, the inflation target. Given …

between monetary autonomy and inflation dynamics in a panel of Caribbean countries over the period 1980-2017. The empirical … results show that monetary independence is a significant factor in determining inflation, even after controlling for … monetary policy for domestic purposes independent of external monetary influences, leads to lower consumer price inflation …