This paper shows that announced credible disinflations under inflation targeting lead to a boom in a standard New …

This paper analyses the impact of asymmetric preferences with respect to inflation and output by policymakers on … for low inflation. Using data for four G7 economies, the paper shows that, except for Germany, nonlinear and asymmetric … monetary authority develops a greater precautionary demand for output expansions than for low inflation. This may generate a …

Speed limit policy, a monetary policy strategy that focuses on stabilizing inflation and the change in the output gap …, consistently delivers better welfare outcomes than flexible inflation targeting or flexible price level targeting in empirical New … inflation targeting strategy, the discretionary speed limit policy performs better for most empirically plausible model …

inflation and aggregate output. Our main findings are threefold. First, monetary policy affects the probability of a crisis both … central bank can both reduce the probability of a crisis and increase welfare by departing from strict inflation targeting and …