inadequate policy tools and theory from the interwar period, set the stage for the Great Inflation of the 1970s. The lessons from … that experience have convinced monetary authorities to reemphasize the goal of low inflation, as it were, committing …

be summarized by a simple policy rule of the type considered in the inflation-targeting literature …

banks following rule-like behavior produces low and stable inflation, stable real performance, and encourages financial … early nineteenth-century debate through postwar developments in monetary theory on the case for stable money and the … inflation and real output) across policy regimes. He examines the performance of the Federal Reserve in its pursuit of …

the adoption of inflation targeting. However, the recent financial crisis and the call for central banks to focus more on …

their role in influencing the credibility of the monetary authority. We focus on measures of inflation expectations, the … mean reversion properties of inflation, and indicators of exchange rate risk. In addition we place some emphasis on whether …