Precursor of Inflation

Part III. German Monetary Targeting: A Precursor to Inflation Targeting

any features of the German monetary targeting regime are also key elements of inflation targeting in the other countries examined in this study. Indeed, as pointed out in Bernanke and Mishkin (1997), Germany might best be thought of as a “hybrid” inflation targeter, in that it has more in common with inflation targeting than with a rigid application of a monetary targeting rule. The German expe...

The Relation Between Inflation and Inflation Uncertainty In Iran

Asymmetric Behavior of Inflation in Iran: New Evidence on Inflation Persistence Using a Smooth Transition Model

T his paper investigates the asymmetric behavior of inflation. We use logistic smooth transition autoregressive (LSTAR) model to characterize the regime-switching behavior of Iran’s monthly inflation during the period May 1990 to December 2013. We find that there is a triple relationship between the inflation level, its fluctuations and persistence. The findings imply that the behavi...

Inflation and Eternal Inflation

The basic workings of inflationary models are summarized, along with the arguments that strongly suggest that our universe is the product of inflation. The mechanisms that lead to eternal inflation in both new and chaotic models are described. Although the infinity of pocket universes produced by eternal inflation are unobservable, it is argued that eternal inflation has real consequences in te...

Inflation Targets and Inflation Targeting

There is widespread agreement that price stability (in practice, low and stable inflation) should be an objective of monetary policy. This agreement is reflected both in the mandates set for monetary policy by governments and in the practice of central banks. Several other important questions about the objectives for monetary policy are less settled: Should there be other objectives? If there a...