dynamic stochastic general equilibrium framework, we examine the effects of alternative monetary policy rules on inflation … persistence, the information content of monetary data, and real variables. We show that inflation persistence and the variability … of inflation relative to money growth depends on whether the central bank follows a money growth rule or an interest rate …

inflation risk. We calculate the term structure of inflation uncertainty in New Keynesian models when the monetary authority … achieves equilibria with substantially lower long-run inflation risk. With either sticky prices or sticky wages, a price path … target reduces the variance of inflation by an order of magnitude more than it increases the variability of the output gap. …

are amplified when the monetary authority responds to that shock by changing its inflation objective. Specifically, higher … inflation raises households’ nominal capital gains taxes since those taxes are not indexed to inflation. The increase in taxes … capital stock is associated with an extended period of low productivity growth and high inflation. Those real effects from the …

is more complicated becasue it depends on policy. It also depends on whether it is the inflation rate or the real …

committed to its inflation target. Our results on nominal interest rate and inflation dynamics do not depend on the particular … committed to a long-run average-inflation objective if it wishes to achieve a dual mandate while avoiding the zero lower bound. …