An exploration of the cross-sectional relationship between inflation and an array of indicators of financial market conditions, using time-averaged data covering several decades and a large number of countries.

Understanding why the prices of commodities, like copper, increase or decrease is one of the many pieces of the puzzle that we as policymakers try to fit together to help us figure out how the economy and inflation will perform in the future. Inflation is what the Federal Reserve can control -...

In a speech at Case Western Reserve University, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto discussed how the recovery is unfolding, focusing on the stubborn nature of high unemployment and her concern about our uncomfortably low rate of inflation. She also explained why...

In a speech to the Pittsburgh Chapter of the Association for Corporate Growth, President Pianalto presented her current outlook for the economic recovery and inflation, and described some risks to that outlook. She also discussed the Federal Reserve's monetary policy and the benefits of an...

In a speech in New York City, Cleveland Federal Reserve Bank President Sandra Pianalto comments on current economic conditions, explains why she thinks the country's economic recovery will be gradual and bumpy, and gives her thoughts on what this gradual path to recovery may mean for inflation...

President Pianalto first explains why maintaining price stability requires keeping inflation expectations low and secure. Second, she describes some inflationary risks that may become significant down the road. Finally, she discusses why, in the face of these risks, central banks' ability to...

In a speech at a Global Interdependence Center conference in Rome, Italy, Federal Reserve Bank of Cleveland President Sandra Pianalto discussed her outlook for U.S. economic growth and inflation, and the implications of that outlook for U.S. monetary policy.

A study of the effect of disinflation policies on monetary velocity, which shows a systematic relation between unexpected changes in the money-income relationship and changes in the trends of inflation rates, and which concludes that the failure to commit to a stable price policy tends to...

What inflation rate should the central bank target? The authors address determinacy issues related to this question in a two-sector model in which prices can differ in equilibrium. They assume that the degree of nominal price stickiness can vary across sectors and that labor is immobile. This...

The authors’ model, embodying moderate amounts of nominal rigidities, accounts for the observed inertia in inflation and persistence in output. The key features of their model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these...