output and real-rate gaps can be represented in a parsimonious and practical manner using the theory of anelasticity that …

, and time-varying trend inflation using post-WWII U.S. data. The model embedding the stochastic target performs better in … policy aggressiveness and inflation gap persistence. …

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 …

conditions and to any form of intertemporal or nominal-real links. They are easy to employ in practice, using inflation protected … bonds to infer real rates. With a time-varying inflation target, they can implement arbitrary inflation dynamics, including …

, effective revenue ceilings induce an increase in deficit, debt and inflation. Under many scenarios, including recurrent adverse …

This paper studies monetary policy rules in a small open economy with Inflation Targeting, incomplete pass-through and …

This paper provides the algebra and a panel diagram to attempt to examine the so-called inflation- unemployment (or …

of the capital stock back to the steady state that requires high interest rate, low inflation and large recession. The … has to create high inflation and small recession. Depending on the private sector's beliefs about the course of future … policy one of these regimes prevails. These results imply that even a high relative weight on inflation stabilisation in …