We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy … rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important … persistent cost-push pressures in the economy leading to a significant deterioration in the inflation - output gap trade …

This paper evaluates the usefulness of various measures of core inflation for the conduct of monetary policy …. Traditional exclusion-based measures of core inflation are found to perform relatively poorly across a range of evaluation … move with macroeconomic drivers. All measures of core inflation, however, have limitations - consequently, there is merit …

We tackle two questions in this paper: In the sovereign debt crisis, what moves the euro area inflation outlook and has … the firm anchoring of medium to long-term inflation expectations been touched? Deriving densities from a new data set on … options on the euro area harmonized index of consumer prices provides us with the full distribution of inflation expectations …

of Inflation Targeting. We start applying methodologies developed by Calvo and Reinhart (2002) and Ball and Reyes (2004 …, 2008) to check the probabilities of changes in exchange rate and monetary policy instruments before and after inflation … exchange rate shocks before and after inflation targeting regime. VAR model helps to understand the impacts of switch in …

model indexation regulates the sources of inflation persistence. When indexation is zero, the inflation gap is purely … forward- looking and inflation persistence depends only on the level of trend inflation, while full indexation makes the … inflation gap persistent and it eliminates the effects of trend inflation. We show that in the former case the optimal policy is …

-run relationship between inflation and output is positive in the Rotemberg model and negative in the Calvo model. ii) The log … inflation enlarges the determinacy region in the Rotemberg model, while it shrinks the determinacy region in the Calvo model. iv …) The responses of output and inflation to a positive technology shock are amplified by trend inflation in Calvo, while they …

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 examines the relationship between nominal interest rate and the expected inflation rate for the Turkish … economy between 2002 and 2009, a period when the inflation-targeting regime was implemented as monetary policy. We use the … actually influenced the real long-term interest rates; the inflation targeting regime pursued by the Central Bank of Turkey is …

Following the Asian financial crisis in 1997-98, a number of Asian central banks adopted inflation targeting. While it … is possible for the average inflation rate to be close to target, deviations of inflation could nevertheless be large and … protracted. We therefore explore how successful this framework has been by looking at the persistence of inflation, as measured …