(close to) zero central banks can influence the inflation expectations via quantitative easing. The unobservable inflation … inflation gap, money growth and the risk spread, the response to asset price inflation becomes more pronounced during the crisis …

, interest rate spreads and asset price inflation should be added to the classical Taylor rule because these variables are … the Fed is concerned, the impact of consumer price inflation, and money and credit growth turns negative during the crisis … while the sign of the asset price inflation coefficient turns positive. Thus we are able to establish significant …

useful information about variables such as commodity prices which matter for aggregate demand and thus inflation. Given this …