Moments (TVP-GMM) framework. Using monthly data until December 2022 for five inflation targeting countries (the UK, Canada …, Switzerland), we find that monetary policy has become more averse to inflation and more responsive to the output gap in both sets … of countries over time. In particular, there has been a clear shift in inflation targeting countries towards a more …

-benevolent government. Although this reform would be socially beneficial and initially succeed in reducing inflation, it would fail to lower … inflation permanently. The smaller anticipated policy distortions implemented by a more independent central bank would induce … the fiscal authority to trade-off higher current deficits for lower future deficits. In the long run, inflation would …

. Seigniorage provides revenue for the government but results in inflation-bias. We analyze three mechanism designed to eliminate … some or all of the biases in monetary policy: an inflation performance contract, inflation target (both contingent on the … stock of debt), and a zero-inflation rule. The performance contract and inflation target result in higher interest rate …

This paper estimates regime-switching monetary policy rules featuring trend inflation using post-WWII US data. We find … evidence in favour of regime shifts and time-variation of the inflation target. We also find a drop in the inflation gap … upon a feedback mechanism running from the monetary policy stance to the inflation gap. Our results support the stochastic …

, distinguishing between (almost) closed, equally sized, and differently sized economies. Applying Bayesian estimation methods, we …

inflation. Furthermore, home bias in households' preferences allows for real exchange rate fluctuation, giving rise to …

the inflation rate, the deviation in real GDP (Gross Domestic Product), the deviation in money supply, the deviation in … weight to the deviation in unemployment rate, and moderate weights are assigned to the deviation in the inflation rate, the …

A flexible approach to direct inflation targeting is a viable monetary policy choice for transition economies that is … analytical model investigating the link between the inflation process and monetary variables in transition economies is advanced … that the monetary convergence begins with inflation targeting and concludes with a full-fledged euroization. It further …