We study the characteristics of inflation targeting as a shock absorber, using quarterly data for a large panel of … natural disasters. We find that inflation targeting improves macroeconomic performance following such exogenous shocks. It … lowers inflation, raises output growth, and reduces inflation and growth variability compared to alternative monetary regimes …

cover the zero-lower bound period and find strong effects on inflation for long-horizon communication shocks …

shock. We find that flexible inflation targeting regime using interest rate rules (IRRs) with floating exchange rates is …-DSGE model, we show that inflation targeting regime using exchange rate rules (ERRs) reduces welfare losses significantly …

, the stimulus from the APP on inflation and economic activity is correspondingly reduced. In particular, if the bonds are … sold immediately after purchases end, the impact on inflation is negligible. Second, if the monetary authority communicates … that it will hold the policy rate constant for one year instead of two, the APP is less effective, and the inflation …

(2010)). We find that the optimal rule responds to house price inflation even when the stabilization of house price is not …

output, aggregate demand, and inflation to an increase in commodity price are magnified when these rules are imperfectly … volatility. Also, our results indicate that having an explicit fiscal rule and an inflation targeting regime contribute to …