The inflation targeting policy, which is adopted in a lot of countries in recent years, has been introduced with a band … target in most countries. However, in the many theoretical analysis, the target of the inflation rate is assumed to be a … few. In this paper, to treat the above-problem, we make the inflation band targeting model which is based on Barro and …

. We use a microfounded New Keynesian model of a monetary union which incorporates persistence in inflation, and examine … non-cooperative interactions of fiscal and monetary authorities. We find that particularly when inflation is persistent …

Since the early 1980s, the United States economy has changed in some important ways: Inflation now rises considerably … less when unemployment falls and the volatility of output and inflation have fallen sharply. This paper examines whether … volatility of monetary policy reaction functions can account for most or all of the change in the inflation …

The purpose of this short paper is to show that inflation “band” targeting can solve the “time inconsistency” problem … that exists under inflation “point” targeting by setting a relevant target range. Moreover, we show that inflation band … natural levels, by setting the inflation rate within a target range and creating unexpected inflation. 2) It can mitigate …

Over the last quarter of a century, inflation targeting has become a popular monetary regime. Nevertheless, empirical … decision and thus needs to be properly instrumented. In this paper, we show that preferences over inflation constitute a … crucial determinant of IT: countries exhibiting greater inflation aversion are more likely to adopt IT …

determinant of the monetary transmission mechanism, namely the degree of persistence characterising the inflation process. The … types of staggered contracts specifications which induce quite different degrees of inflation persistence. The paper shows … that inflation persistence is high when uncertainty about the prevailing degree of inflation persistence is pervasive …

a rationale for the practice of inflation zone targeting. We show that the presence of either zone-quadratic preferences … or a zone-linear relationship between inflation and economic activity provides strong incentives to deviate from … structure and relative preference towards economic stability in determining the width of the implied targeted inflation zone …

The ongoing trend of high inflation across much of the world has reignited interest in inflation volatility with … varying foci and methods. In this paper, we employ a Bayesian framework to estimate inflation volatility using a sample of G20 … countries. Estimation results suggest persistent heterogeneity in price volatility across time and countries. Furthermore, we …

This paper examines the properties of interest rate rules aimed at controlling aggregate price inflation. Policies are … inflation is price level and inflation indeterminacy. Therefore, policies that succeed in one kind of economy may not work in … smoothing. In the flexible inflation regime, interest rate smoothing is superfluous, and unique and stable price paths are …