stability under adaptive learning for interest rate rules that respond to inflation measures differing in their degree of price … stickiness. We find that rules responding to headline inflation measures that assign a positive weight to the inflation of the … the inflation of the sector with high price stickiness. By this we mean that they are more prone to induce non …

proportionally to inflation. We show that conditions under which these rules generate aggregate instability by inducing liquidity … that respond to expected future inflation are more prone to induce endogenous cyclical and chaotic dynamics the more open …

financial system. Our simulations suggest that if financial instability affects output and inflation with a lag and if the … can trade off more output and inflation instability today for a faster return to the trend than a policy that follows the … simple Taylor rule with only the contemporaneous output gap and inflation …

We analyse optimal monetary and fiscal policy in a New-Keynesian model with public debt and inflation persistence … striking result is not true with high degrees of inflation persistence. Secondly, we show that optimal fiscal policy is more … active under discretion than commitment at all degrees of inflation persistence and all levels of debt …

estimate a New Keynesian Phillips curve for Armenia, suggesting a significant role of the output gap and inflation expectations … in determining current inflation. Finally, the underlying fiscal stance over the period 2000-09 is assessed by estimating …

high frequency. The model yields predictions on biweekly patterns of the federal funds rate’s volatility and on its …. Theoretical results are consistent with empirical patterns of interest rate volatility in the U.S. market for federal funds …

allowing more exchange rate flexibility to support the transition to a full-fledged inflation targeting regime, and reducing …