Central banks in Asia and the Pacific have overwhelmingly chosen inflation as the principal objective of monetary policy. Some central banks have declared themselves to be inflation targeters, while others pursue their objective without referring to this particular label. Moreover, whether or not they refer to their strategy as inflation targeting, central banks in the region have chosen divers...

We argue that there are conditions such that any inflation targeting regime is preferable to full policy discretion, even if long-run inflation rates are identical across regimes. The key observation is that strict inflation targeting outperforms the discretionary policy response to sufficiently persistent shocks. Under full policy discretion, inflation expectations over the medium term respond...

This article examines public opinion in advanced economies to assess what the general public thinks about inflation. Are individual citizens concerned about inflation? How important a public policy issue do they think it is? What influences their opinions about inflation? Does opinion about inflation vary across countries and, if so, what accounts for this variation? The opinion surveys examine...

this paper tries to survey the independence of central bank of iran and its relationship to inflation by using the data of 56 developing countries during 1990s. the results signifies that there are no significant relationship between inflation and the independence of central banks in these countries. in other words, according to the existing evidences, not all the developing countries with high...

This paper estimates a time-varying AR-GARCH model of inflation producing measures of inflation uncertainty for the euro area, and investigates the linkages between them in a VAR framework, also allowing for the possible impact of the policy regime change associated with the start of EMU in 1999. The main findings are as follows. Steady-state inflation and inflation uncertainty have declined st...

Inflation targeting was introduced in New Zealand in 1990 and has since been adopted by more than 20 countries. This period of only 15 years has seen major progress in practical monetary policy. The practice of inflation targeting has led to a more systematic and consistent internal decision process (Brash 2000; Sims 2002; Svensson 2001a), much more transparent communication with the private se...

Ana del Río * We wish to thank Juan Ayuso, Fernando Restoy and participants in the seminar held at the Banco de España, especially Liliana Toledo, for helpful comments and suggestions. Abstract Inflation-indexed bonds are fixed-income securities whose nominal cash flows are adjusted to an inflation index. In countries where these securities exist, inflation expectations are sometimes estimated ...

This explanation has been articulated in a number of recent papers. See, for example, Azariadis and Smith (forthcoming), Boyd and Smith (forthcoming), and Schreft and Smith (forthcoming and 1994). A consensus among economists seems to be that high rates of inflation cause " problems, " not just for some individuals, but for aggregate economic performance. There is much less agreement about what...

Johnson’s paper addresses one of the main issues of central banking: How successful have monetary authorities been in acquiring credibility for their inflation objectives? Johnson’s approach is both simple and elegant. For countries with explicit inflation targets, he examines whether inflation expectations are consistent with those targets. Since not all central banks have explicit inflation t...

Yes, they would. In a randomized control trial, we provide groups of respondents from the Bundesbank Online Panel Households with information about hypothetical alternative ECB monetary policy regime akin to Federal Reserve’s flexible average inflation targeting (AIT). Inflation expectations significantly increase for treated individuals. When additional near-term inflation, low levels trust in...