switch from exchange rate to inflation targeting and adoption of a policy rule for the use of petroleum revenues. We find … that the long-run means of CPI and core inflation rates declined significantly until the mid-1990s and have since then … remained close to the inflation target of 2.5% from 2001 onwards. The persistence in especially CPI inflation has fallen during …

. Key to our estimation strategy is the use of survey - based expectations for inflation and output. We identify … period. Output shocks shift to the low volatility regime around 1985 whereas inflation shocks do so only around 1990 …, suggesting active monetary policy may have played role in anchoring inflation expectations. Shocks and policy regimes jointly …

implications for monetary policy as the central bank has to decide which inflation rate to target. Our results demonstrate that …

cost of inflation in a sector increases in price flexibility, altering the optimal inflation target policy. A monetary … policy that stabilizes the optimal inflation index mitigates the paradox …

political business cycles, the inflation-stabilisation dilemma is discussed along with proposed solutions in the form of central … bank independence and conservativeness, incentive contracts, and inflation targets. The final section turns to current …

inflation volatility to zero. (iii) The statistical Phillips Curve changes substantially with policy instruments and activist … inflation hence the aggregate price level appears "sticky" with respect to money shocks. (v) Discretion in monetary policy adds … current effective policy is only mildly activist and aims mostly to target inflation …