macroeconomic behaviour. Inflation targeting is compared to the welfare maximizing monetary rule and to a fixed nominal exchange … rate. It is found that flexible inflation targeting produces too little exchange rate volatility compared to the optimal … rule but delivers higher welfare than a fixed nominal exchange rate. Strict inflation targeting also delivers higher …

This paper investigates the relationship between time variations in output and inflation dynamics and monetary policy … rules in the 1970s and 1990s are similar as is the transmission of policy disturbances. Inflation persistence is only partly … and inflation. Results are robust to alterations in the auxiliary assumptions. …

Extending recent theoretical contributions on sources of inflation inertia, we argue that monetary policy uncertainty …

description of the U.S. business cycle, and that the inflation/unemployment trade-off facing monetary policymakers is …

output or inflation as in the empirical 'two-pillar' Phillips curves estimated in some recent contributions, it would be …-checking does not require direct effects of money on output or inflation. …

Asset price inflation presents central banks with a puzzle. I examine the case of Germany, 1925-7, when the Reichsbank …

This Paper proposes an index of core inflation for the euro area which exploits information from a large panel of time … component of national inflation and disregarding the idiosyncratic one, we clean inflation from measurement error, discrepancies …