An issue with monetary policy rules to guide inflation is the indeterminacy of the price level. In the context of a … reaction function on nominal income accomplishes the task of stabilizing the price level, so that inflation and any costs of …

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 …

inflation-targeting regime 19932002 with the policies implied by certain simple instrument rules. Calibrated rules that are … describe monetary policy about equally well. A close reading of various policy documents, e.g., Inflation Reports, minutes from …