alternative monetary policy strategies. We start with the relationship between output and inflation and investigate the fit of the … reject the nominal contracting model in favor of the relative contracting model which induces more inflation persistence, we … in countries which transitioned out of a high inflation regime such as France and Italy. We close the model by estimating …

This paper considers a sticky price model with a cash-in-advance constraint where agents forecast inflation rates with …. While average output and inflation result the same as under rational expectations, higher moments differ substantially …: output and inflation show persistence, inflation responds sluggishly to nominal disturbances, and the dynamic correlations of …

natural rate and large real-time errors in estimates of the natural rate uprooted heretofore quiescent in inflation … inflation expectations would have remained anchored and the stag inflation of the 1970s would have been avoided. Indeed, we find … that less activist policies would have been more effective at stabilizing both in inflation and unemployment. We argue that …

impact of the zero bound on the effectiveness of interest rate policy in Japan in terms of stabilizing output and inflation …

impact of the zero bound on the effectiveness of interest rate policy in Japan in terms of stabilizing output and inflation …

natural rate and large real-time errors in estimates of the natural rate uprooted heretofore quiescent in inflation … inflation expectations would have remained anchored and the stag inflation of the 1970s would have been avoided. Indeed, we find … that less activist policies would have been more effective at stabilizing both in inflation and unemployment. We argue that …

alternative monetary policy strategies. We start with the relationship between output and inflation and investigate the fit of the … reject the nominal contracting model in favor of the relative contracting model which induces more inflation persistence, we … in countries which transitioned out of a high inflation regime such as France and Italy. We close the model by estimating …