inflation, output, and long-term interest rates, central banks in small open economies face peculiar challenges in their …

role played by inflation expectations and the money supply shocks during major oil shock episodes. These shocks partially …The paper adds money supply and inflation expectations shocks to a well-known three-variable structural model that … supply and to inflation expectations significantly increase real oil prices; with the unadjusted M1 aggregate there is no …

aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …

aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …

combined with the theory of optimum currency areas. It shows how since the turn of the millennium a too expansionary monetary …

permanent shifts of the exchange rate and the price level if a central bank anchors long-run inflation expectations. In line … the price level to a temporary risk shock are permanent. Our theoretical discussion shows that adopting a credible long …-run price level target rather than a long-run inflation target avoids these permanent shifts of the exchange rate and the price …

shocks and uncertainty about the central banker's and the medianvoter's inflation target. A contract which is based on self …-imposed monetary target announcements proves to be superior to the best monetary rule if conflicts about the inflation target within …-imposed targets depends on the type of conflict within society, whether the individuals disagree on the weight of the inflation versus …