qualitative and quantitative information on subsequent inflation. The usefulness of monetary analysis is contrasted to weaknesses … in modeling monetary policy and inflation with respectively short-term interest rates and real activity measures. The … analysis sheds light on the recent change in inflation volatility and persistence as well as on the Phillips curve flattening …

In a simple New Keynesian model, we derive a closed form solution for the inflation-gap persistence parameter as a … to inflation and the output gap, we show that the empirically observed changes in U.S. inflation-gap persistence during … Benati’s (2008) view that inflation persistence should not be considered a structural parameter in the sense of Lucas. …

inflation as one component of future real wages. This paper scrutinizes whether countries in CEE that officially announce an … inflation target are tempted to act time-inconsistently and switch from the announced inflation target to an exchange rate … target in order to sustain higher output via surprise inflation. If market participants discover the time-inconsistency, they …

.S. macroeconomic data. We first study the stabilizing properties of the classical Taylor rule (inflation targeting, IT) and add either …

Can U.S. monetary policy in the 1970s be described by a stabilizing Taylor rule with a two percent inflation target … when policy is evaluated with real-time inflation and output gap data? If so, it is problematic to use the Taylor rule as a … 2009 since the same policy produced the Great Inflation. Using economic research on the full employment level of …

Recent empirical evidence by Fair (2002,2005) and Giordani (2003) shows that a positive inflation shock with the … Synthesis' literature. This paper reconsiders the effects of inflation shocks in a simple New Keynesian framework extended to … include wealth effects. It is demonstrated that, following an inflation shock, the decline of output coupled with passive …

's remarkable inflation performance over the past decade, in spite of the absence of explicit inflation targeting. In particular, we … aim to shed light on the role of inflation in the conduct of monetary policy by the People's Bank of China (PBC) in the … smoothed. Second, the PBC appears to have built up a monetary policy framework similar to implicit flexible inflation targeting …

experiment of the past decade, stemming from a belief of the government that higher interest rates cause higher inflation … eventually a negative coefficient on inflation in the policy rule. In such an environment, was the exchange rate still a random … walk? Was inflation anchored? Does the "standard model" suffice to explain the broad contours of macroeconomic outcomes in …

preference (RAP) as well as inflation avoidance preference (IAP) is established. And it is found that RAP is dominant over IAP …, thus confirming nonlinearities in reaction function which in the present case turns out to be concave in inflation and … and negative inflation and output gap differ over long time horizons thus confirming asymmetric policy preferences …