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Ten years of empirical studies of inflation targeting have not uncovered clear evidence that monetary policy that incorporates formal targets imparts better inflation performance. The authors survey the literature and [...]

Economic theory suggests that monetary policy tends to have an inflationary bias when monetary policy is discretionary (Barra and Gordon, 1983). This bias can be eliminated if the monetary authority [...]

In the minutes of its December 17, 1996 meeting, the Federal Open Market Committee (FOMC) described its policy stance as one of 'watchful waiting.' In the second half of that [...]

For U.S. monetary policy, 1994 was an eventful year. Despite little change in measured price inflation, expectations of inflation began increasing in late 1993, as interest rates on 10-year government [...]

Exchange rate pegs collapsed in many countries in the 1990s, leading to dreary assessments of the merits of pegged exchange rate regimes. Whether one points to the failure of Mexico's [...]