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 …

Modern monetary policy analysis is built around the concept of an interest rate rule that responds to both inflation … suggest that targeting the true output gap can be well approximated by a rule that only reacts to inflation. …

responds to inflation and output volatility, especially during economic crises. This framework offers a promising alternative …

and foremost, as a commitment device. In our setting, a monetarytarget helps anchoring inflation and inflation … as a strong response to deviations of inflation from target and to theactivity growth gap. In contrast, the response to …

current burst of inflation in the wake of the COVID-19 pandemic and the inflation that Americans experienced 100 years ago … announced aggressive plans to reduce its massive balance sheet. Expectations are that tightening will continue until inflation … between the 1919 Inflation and COVID-19 Inflation and attempt to time the market. This is a risky proposition for long …

This paper studies the optimal long-run inflation rate in a simple New Keynesian model with occasionally binding … inflation rate is around 1.5% if the economy is hit by a total factor productivity (TFP) shock and nearly 2.5% if the economy is … asymmetric endogenous cost-push shock is positive, inflation is also positive on average. In addition, a binding collateral …

interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

contracts, and inflation policy targets. The last section addresses current developments. These include the proper choice of …

This paper empirically analyzes whether and to what extent the adoption of inflation targeting (IT) in Korea, Indonesia …