and dispersion of LAMP increase the desired inflation volatility and decrease the desired output volatility.  The implied … be the response of the nominal interest rate to expected inflation. …

and dispersion of LAMP increase the desired inflation volatility.  The implied optimal Taylor rule shows that subject to … interest rate to expected inflation. …

during the `Great Inflation` period. …

Optimal monetary policy is sensitive to the Phillips curve specification used to represent the dynamics of inflation … inflation and price level targeting. …

In countries with credible inflation targeting, it seems plausible to suggest that instead of forming a rational … expectation, some firms (inflation-targeters) might simply expect future inflation to always equal its target. This paper analyses … shocks have any persistence, inflation is more stable, loss is reduced, and the optimal policy frontier is improved as the …

setting causes inflation persistence. We analyse how the endogeneity of the capital stock changes the macroeconomic dynamics … inflation more persistent in reduced form. This makes the optimal contemporaneous policy response to shocks more vigorous but …