expansionary policy than a high-credibility bank, in the sense that it induces higher inflation, but a less expansionary policy in … the sense that it induces lower inflation and employment than expected. Increased transparency makes the bank's reputation …

output-inflation tradeoffs and their business cycles are perfectly synchronised. Under supply shocks, welfare implications …

can precommit, even in the absence of the traditional inflation bias. This paper quantifies the welfare differential …-consistent models. From the precommitment and discretionary solutions we calculate the permanent deviation of inflation from target that … in welfare terms is equivalent to moving from discretion to precommitment, the inflation equivalent. In the estimated …

conventional wisdom, it is found that price-level targeting leads to a better trade-off between inflation and output …-gap variability than inflation targeting, when the central bank acts under discretion. In some cases, price-level targeting under … dircretion results in the same equilibrium as inflation targeting under commitment. …

In recent years, activist monetary policy rules responding to inflation and the level of economic activity have been … advanced as a means of achieving effective output stabilization without inflation. Advocates of such policies suggest that … capacity as the primary underlying cause of the 1970s inflation and suggests that apparent differences in the framework …

shortfalls in inflation and output relative to exogenous trends, and the policy rate is kept at the ELB until the joint shortfall … is made up. Bernanke's second proposal adds only the cumulative inflation shortfall since the beginning of an ELB episode … directly to an otherwise standard Taylor rule. This cumulative shortfall in inflation from the 2 percent objective can be …

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 …

the economy, when assuming that the monetary authority put higher weight on inflation stabilization than society. We … demonstrate that inflation-conservatism unambiguously leads to social welfare losses if the fiscal authority acts strategically …