involving U.S. inflation and GDP growth. Empirical results suggest that the number of change points is larger than previously …

This paper investigates the consequences of debt stabilization for inflation targeting. If the monetary authority … perfectly stabilizes inflation while the fiscal authority holds constant the real value of debt at maturity, the equilibrium … inflation targeting appears to be more robust than flexible debt targeting to alternative parameter configurations and steady …

alternates between periods of deflation coupled with low output and periods of high economic activity with excessive inflation …. More generally, initial beliefs that are arbitrarily close to the inflation target equilibrium can result in complex … helps stabilize expectations around the inflation target equilibrium. …

Most macroeconomic models for monetary policy analysis are approximated around a zero-inflation steady state, but most … central banks target inflation at a rate of about 2 percent. Many economists have recently proposed even higher inflation … importance of appropriately accounting for a low, positive trend inflation rate for the conduct of monetary policy. We first …

a basket composed of domestic price inflation, exchange rate and output. We show that from a welfare perspective, the …