Private Sector in order to assist the MPC achieve its objectives? We show that this is not true for symmetric inflation … targeting, where ‘cheap talk’ selects the Pareto dominant equilibrium. (This contrasts with the case where high inflation is … penalised, but not below target inflation). …

difference between actual M3 growth (net of the inflation objective) and the expected money demand trend dynamics, can be useful … to predict HICP inflation. …

both on the duration of the zero lower bound and on features that determine the responsiveness of inflation. …

conditions, a policy of zero inflation is optimal both in the long run and in response to aggregate shocks. Key to this finding … is an "envelope" property: at zero inflation, a marginal increase in the rate of inflation has no effect on firms … remains very close to strict inflation targeting. …

either price-level or nominal GDP targeting and compare these regimes to inflation targeting. These interest-rate rules are … domain of attraction of the targeted steady state, volatility of inflation and output and sensitivity to the speed of … learning parameter. Performance of price-level and nominal GDP targeting significantly improves if the additional guidance in …