inflation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable … loss function (corresponding to flexible inflation targeting) is discussed, including the index and level for the inflation … price stability. The benefits of credibility (private inflation expectations coinciding with the inflation target) are …

It is argued that inflation targeting is best understood as a commitment to a targeting rule rather than an instrument …

It is argued that inflation targeting is best understood as a commitment to a targeting rule rather than an instrument …