We analyse the interaction between private agents' uncertainty about inflation target and the central bank's data … uncertainty. In our model, private agents update their perceived inflation target and the central bank estimates unobservable … economic shocks as well as the perceived inflation target. Under those two uncertainties, the learning process of both private …

monetary policy regime under uncertain inflation dynamics that alter the steady state properties of the underlying model as … well as the stochastic dependencies between model parameters and shocks. Since shifts in the inflation target are examples … persistence of inflation to the recent proposal of Blanchard et al. (2010) to raise the inflation target from its conventional …

This paper extends a standard New Keynesian model to describe the effects of anticipated shocks to inflation and …

determination of the central bank to leave unchanged its long-term inflation objective in the face of inflationary shocks. The … magnitude of private sector learning has been calibrated to match the volatility of US inflation expectations at long horizons …. Given such illustrative calibrations, we find that the costs of maintaining a given inflation volatility under weak …

Adequate modeling of the seasonal structure of consumer prices is essential for inflation forecasting. This paper … suggests a new econometric approach for jointly determining inflation forecasts and monetary policy stances, particularly where … money growth and implied exchange rate paths along with a jointly determined inflation forecast. The approach uses two broad …

heterogeneous inflation expectations. Expectations are updated through social dynamics and, with heterogeneity, not all firms choose … to operate, putting downward pressure on realized inflation. Our model rationalizes why countries stuck at the zero lower … bound have had a hard time increasing inflation with- out being aggressive. The same model also predicts that announcing an …

heterogeneous inflation expectations. Expectations are updated through social dynamics and, with heterogeneity, not all firms choose … to operate, putting downward pressure on realized inflation. Our model rationalizes why countries stuck at the zero lower … bound have had a hard time increasing inflation without being aggressive. The same model also predicts that announcing an …

We analyse the interaction between private agents? uncertainty about inflation target and the central bank's data … uncertainty. In our model, private agents update their perceived inflation target and the central bank estimates unobservable … economic shocks as well as the perceived inflation target. Under those two uncertainties, the learning process of both private …