nominal interest rates and inflation. The adoption of a disinflation policy in October 1979 does not appear to have had a … inflation, the lag from money growth to inflation, and lag from money growth to nominal GDP growth. Generally, the monetary … policy in the early period allowed the average inflation rate to ratchet upward with each business cycle. This policy was …

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 …

- than fixed-rate contracts. The source of impulse also matters: persistent inflation shocks have larger effects than … cyclical fluctuations in inflation and nominal interest rates. …