activity and inflation as latent variables. We incorporate these latent variables into a factor-augmented vector autoregression … activity and inflation, consistent with previous studies. In contrast to much of the literature, however, we find that changes … in Chinese interest rates also have substantial impacts on economic activity and inflation, while other measures of …

leads to a Phillips curve equation, which makes the inflation rate depend on the expected present-value of future marginal … cost as well as the current periodicals marginal cost and the expected rate of future inflation. …

and destabilized the economy. Had monetary policy reacted less aggressively to perceived unemployment gaps, inflation … activist policies would have been more effective at stabilizing both inflation and unemployment. We argue that policymakers … the natural rate of unemployment during the late 1960s and 1970s on the formation of expectations and macroeconomic …

and destabilized the economy. Had monetary policy reacted less aggressively to perceived unemployment gaps, inflation … activist policies would have been more effective at stabilizing both inflation and unemployment. We argue that policymakers … the natural rate of unemployment during the late 1960s and 1970s on the formation of expectations and macroeconomic …

on a perceived law of motion for inflation and observed moments of the inflation time series. The perceived law of motion … allows for both temporary and permanent shocks to inflation, the latter intended to capture the possibility of evolving … shifts in the central bank's inflation target. In this case, the agent's optimal forecast rule defined by the Kalman filter …

curve depend on the level of inflation and the extent of downward nominal wage rigidities. This is true for the both the … dynamics of unemployment and wage growth from 2006 through 2012. …