Observed inflation targets around the industrial world are concentrated at two percent per year. This chapter … investigates the extent to which the observed magnitudes of inflation targets are consistent with the optimal rate of inflation … of inflation ranges from minus the real rate of interest to numbers insignificantly above zero. Furthermore, we argue …

inflation, the relationship between money and capital accumulation, and the Phillips curve. We also extend the benchmark model …

banks set interest rate targets, and do not even pretend to control money supplies. How is inflation determined under an …We finally have a complete theory of inflation under interest rate targets, that mirrors the long-run neutrality and … frictionless limit of monetary theory: Inflation can be stable and determinate under interest rate targets, including a k percent …

central bank balance sheets. We analyze the experience in seven advanced economies (Australia, Canada, Euro area, New Zealand …

during the Fed׳s first 100 years: the post-World War I deflation, the deflation of the Great Depression, the inflation of … World War II, and the Great Inflation of the 1970s. In terms of their macroeconomic impacts, I find that deflation was … War II was in debasing debt through inflation. I find that the main drivers of the 1970s economy were long-run changes in …

would happen if assumptions are changed so inflation have redistribution effects. Evidence on nominal positions suggests …

curve. Current and future firms entering in the markets decrease current inflation because they reduce markups and the … number of firms) and zero producer price inflation. The optimal Ramsey allocation implies zero inflation tax in steady state. …