. After deriving the restrictions that the Barro and Gordon model imposes on a time series model for inflation and output, we … show that the time inconsistency problem can explain both the short-run and the long-run behaviour of inflation and output …

. After deriving the restrictions that the Barro and Gordon model imposes on a time series model for inflation and output, we … show that the time inconsistency problem can explain both the short-run and the long-run behaviour of inflation and output …

inflation. Previous studies, which assume a constant degree of price rigidity across inflation regimes, find two time consistent … equilibria - one with low inflation, the other with high inflation. In contrast, when price rigidity is endogenous, the high … inflation equilibrium ceases to exist. Hence, time consistent equilibrium is unique. This result depends on two features of the …

The purpose of this short paper is to show that inflation “band” targeting can solve the “time inconsistency” problem … that exists under inflation “point” targeting by setting a relevant target range. Moreover, we show that inflation band … natural levels, by setting the inflation rate within a target range and creating unexpected inflation. 2) It can mitigate …

regimes that are nested within this framework: inflation, output-gap growth and nominal income growth targeting; and inflation …

This paper provides the algebra and a panel diagram to attempt to examine the so-called inflation- unemployment (or …

This paper provides the algebra and a panel diagram to attempt to examine the so-called inflation- unemployment (or …

In this paper, I investigate the monetary policy of five industrialized countries which have had explicit inflation … conditions. The results support the theory of flexible inflation targeting under discretion for the United Kingdom. For New … the wind. The central banks of Canada, Sweden, and Australia have behaved in line with the theory of flexible inflation …

This paper provides the algebra and a panel diagram to attempt to examine the so-called inflation- unemployment (or …