information plays a minor role at short forecast horizons but turns out to be of crucial importance for inflation and unemployment … relevant for explaining future inflation than information embodied in the midpoint. …

incur a higher loss when they underpredict (overpredict) inflation and unemployment (real GDP) as compared to an …

central banks raise rates when society's inflation aversion is above its long-run trend. Second, the reaction to inflation is … non-linearly increasing in the degree of inflation aversion. Third, this emphasis on fighting inflation does not have a …

monetary policy objective. We find that for the price of a strong hike in inflation a severe economic recession can be avoided …

stabilises inflation over the appropriate horizon (generally approximately eight quarters), that is, it achieves medium …, that is, if it becomes forward-looking. This means that if monetary policy looks through short-term surges in inflation …, then in the event of an adverse cost-push shock it need not aggravate the slowdown of the real economy to combat inflation …

expectations of economic agents are not completely rational or the inflation target of the central bank is not credible, there is a … risk that agents will consider the additional inflation attributable to the VAT hike to be persistent and future inflation … shocks, but attempts to offset second-round effects on inflation. However, in countries where the inflation target had not …

the Government. While the low inflation environment resulting from the central bank’s operation and the sound functioning … with the September issue of the Quarterly Report on Inflation, we expect that the central bank’s interest loss may be …