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

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 …

the employment of less attached workers when the central bank follows an average inflation targeting rule and when the … strict to an average inflation targeting framework especially benefits workers with lower labor force attachment. …

financial variables in the monetary policy rule can bring macroeconomic benefits in terms of lower volatility of inflation and … implied volatilities of inflation and output. Second, the usefulness of the augmented monetary policy rule is the most …

The recovery from the Global Financial Crisis was characterized by sluggish output growth and by inflation remaining … persistently below the inflation targets of central banks in many advanced economies despite an unprecedented monetary expansion …

The recovery from the Global Financial Crisis was characterized by sluggish output growth and by inflation remaining … persistently below the inflation targets of central banks in many advanced economies despite an unprecedented monetary expansion …

Part of the present inflation is caused by the breakdown of globalization, in particular supply chains, part is caused … the past and in the presence. This paper attributes inflation decisively to the overwhelming money creation by the …