that the inflation bias can persist even when the central bank commits. A simple model is presented in which the central … bank precommits by setting the policy instrument, and the subsequent adjustment of inflation expectations is part of the … transmission mechanism. Generally there is still an inflation bias, despite the absence of a time-inconsistency problem. It is …

This paper provides a Vector Auto-Regression (VAR) analysis of inflation and monetary policy. It identifies monetary … policy shocks in a benchmark recursive structure of VARs with two alternative inflation measures, viz., headline WPI and core … inflation measure. Unlike the results in case of WPI, the response of core prices declined swiftly, following a positive call …

We analyze implications of inflation persistence for business cycle dynamics following terms of trade and risk … are slow and cyclical if there is a significant backward-looking element in the inflation dynamics and the exchange rate …

price model a 'weak' central bank response to inflation generates sunspot fluctuations, the consequences of pooling … of inflation persistence had not been investigated. Using Monte Carlo simulations from a purely forward-looking model …, this paper shows that indeterminacy can introduce a sizable persistence in the process of inflation. On the reduced form …

This paper estimates the path of inflation persistence in the United States over the last 50 years and draws … predict persistent inflation outcomes. Time variation of the central bank's preference for output stability should be … reflected in changes in inflation persistence. We estimate an ARMA(1,q) model with a time-varying autoregressive parameter for …

An inflation targeting central bank aims to stabilize the rate of inflation. But which 'inflation' should this be …? Quarterly, annual, biennial? We analyze the effects on optimal monetary policy of increasing the period over which the inflation … rate is defined. When inflation stabilization is the sole objective of the central bank, more aggressive monetary policy …