Foreword / Esther L. George -- Introduction / Jonathan L. Willis -- The moderators - James Poterba, Erica L. Groshen -- Customer markets and financial frictions: implications for inflation dynamics / Simon Gilchrist, Egon Zakrajšek -- Commentary / Peter J. Klenow -- The international price...

"Why is inflation persistently high in some periods and low in others? The reason may be absence of commitment in monetary policy. In a standard model, absence of commitment leads to multiple equilibria, or expectation traps, even without trigger strategies. In these traps, expectations of high...

Remarks for the Bank of Korea International Conference 2010, June 1, 2010 Seoul, Korea