Inflation targeting, the zero lower bound and post-crisis monetary policy

The above discussion suggests that adopting a target path for the price level can effectively allow the central bank to achieve a lower average rate of inflation in the economy

The dependence of the size of the consumption losses on the steady state real interest rate, displayed in fi gure 1, suggests that the lower bound in fl icts sizable welfare

Thus, our numerical example suggests that especially under flexible inflation targeting a pre-emptive interest rate hike during an asset price boom indeed is a reasonable

The central bank announces a rising path for the price level in preference to a positive inflation target to eliminate the potential costs that some saw with the Krugman

He shows that a temporary increase in interest rates (in response to deviations of inflation from the target) induces a permanent decline in the natural rate of growth and,

A plausible inception of RIFT depends on a prior record of price stability and a demonstrated functional relationship between the relative inflation forecast (as a target

Bank Indonesia should be powerful in directing inflation target and avoided crowding out by utilizing five pillars policy mix related with corresponded by government,

In setting the [target] band, the Fed would also communicate to the public its assess- ment of the short-run volatility in inflation that is consistent with the Fed’s maintaining