Inflation forecast targeting: Implementing and monitoring inflation targets
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In this paper, the central bank's inflation forecast becomes an explicit intermediate target, and the weight on output stabilization determines how quickly the inflation forecast is adjusted towards the inflation target, leading to higher inflation variability.About:
This article is published in European Economic Review.The article was published on 1997-06-01 and is currently open access. It has received 1384 citations till now. The article focuses on the topics: Monetary policy reaction function & Inflation targeting.read more
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The Science of Monetary Policy: A New Keynesian Perspective
TL;DR: In contrast to conventional wisdom, this paper showed that gains from commitment may emerge even if the central bank is not trying to inadvisedly push output above its natural level, and also considered the implications of frictions such as imperfect information.
Posted Content
Inflation Dynamics: A Structural Economic Analysis
Jordi Galí,Mark Gertler +1 more
TL;DR: In this paper, the authors developed and estimated a structural model of inflation that allows for a fraction of firms that use a backward looking rule to set prices, and they concluded that the New Keynesian Phillips curve provides a good first approximation to the dynamics of inflation.
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Inflation dynamics: A structural econometric analysis
TL;DR: In this paper, the authors developed and estimated a structural model of inflation that allows for a fraction of firms that use a backward-looking rule to set prices, and the model nests the purely forward-looking New Keynesian Phillips curve as a particular case.
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Monetary Policy Rules Based on Real-Time Data
TL;DR: In this paper, the authors examine the effect of data revisions on the accuracy of Taylor's rule and show that the Taylor rule can yield misleading descriptions of historical policy, especially when the analysis is based on ex-post revised data.
References
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Discretion versus policy rules in practice
TL;DR: In this article, the authors examine how recent econometric policy evaluation research on monetary policy rules can be applied in a practical policymaking environment, and the discussion centers around a hypothetical but representative policy rule much like that advocated in recent research.
Journal ArticleDOI
The Optimal Degree of Commitment to an Intermediate Monetary Target
TL;DR: In this article, it is shown that the ideal central bank should place a large, but finite, weight on inflation, and a new framework for choosing among alternative intermediate monetary targets is proposed.
ReportDOI
A Positive Theory of Monetary Policy in a Natural-Rate Model
Robert J. Barro,David B. Gordon +1 more
TL;DR: In this paper, the authors find that monetary growth and inflation are excessive and these rates depend on the slope of the Phillips curve, the natural unemployment rate, and other variables that affect the benefits and costs from inflation.
Book
Central Bank Strategy, Credibility, and Independence: Theory and Evidence
TL;DR: In this paper, the authors discuss monetary policy with private information under perfect information and asymmetric information and changing objectives under discretion, and provide an overview of the employment and revenue motivations for monetary expansion.
Journal ArticleDOI
A Theory of Ambiguity, Credibility, and Inflation under Discretion and Asymmetric Information
Alex Cukierman,Allan H Meltzer +1 more
TL;DR: In this paper, a positive theory of credibility, ambiguity, and inflation under discretion and asymmetric information is developed. But the authors do not consider the impact of monetary control on the public's ability to distinguish persistent changes of emphasis on different policy objectives from transitory monetary control errors.