Modern monetary policy analysis is built around the concept of an interest rate rule that responds to both inflation … suggest that targeting the true output gap can be well approximated by a rule that only reacts to inflation. …

This paper examines the long-run effects of supply shocks (such as oil shocks) on inflation in the United States. The … persistence of supply shocks in U.S. inflation fell considerably during the period of Volcker’s disinflation (1979-1982). My … the behavior of inflation expectations - agents expected shocks to persist in the pre-Volcker period, but not in the post …

This paper studies the role of the yen/dollar exchange rate in the Bank of Japan’s monetary policy reaction function …

weak central bank response to inflation generates sunspot fluctuations, the consequences of pooling observations from … estimated process of inflation. This persistence however is not an intrinsic feature of the economy; rather it is the result of …

central bank can prevent or fix liquidity traps by appending to its inflation-targeting monetary policy with a prioritized …

inflation, has remained unexplained in terms of its mathematical origins. Keynes had attempted to relate inflation to a … mechanism of "sticky wages and prices". Hitherto, such theories of inflation have remained unproven and disputable. Recently …, during the so-called "New Economy" era, characterized by a spread of electronic transactions and Internet commerce, inflation …

welfare, since it often reduces the union’s utility. In particular, we show that an inflation-neutral union will never find it …