Empirical evidence suggests that considerable differentials in inflation rates exist across households. This paper … investigates how central banks should react to household inflation heterogeneity in a tractable New Keynesian model. We include two … households that differ in their consumer price inflation rates after adverse shocks. The central bank reacts to either an average …

This paper is part of a dialogue with Blair Fix on how inflation redistributes income between creditors and workers and … the way in which monetary policy affects this process. In his 2023 paper, 'Inflation! The Battle Between Creditors and … Workers', Fix shows, first, that the impact of U.S. inflation on creditor-worker distribution has been historically contingent …

accountability of the ECB with some other central banks (Bank of Canada, Bank of Japan, Bank of England and the Federal Reserve … System). In the second part, we present a theory of central bank accountability. Two aspects of accountability are considered … accountability through transparency leads to a lower expected rate of inflation and less stabilization of supply shocks …

three countries that adopted inflation targets in the early 1990s: The United Kingdom, Canada, and New Zealand. For all …Since 1990, a number of countries have adopted inflation targeting as their declared monetary strategy. Interpretations … of the significance of this movement, however, have differed widely. To some, inflation targeting mandates the single …