employment even if inflation is fully anchored and the real interest rate significantly reduced. Our framework also sheds light … (iv) the low inflation puzzle under quantitative easing. …

May 30, 2012. "Demographics, Redistribution, and Optimal Inflation," with Carlos Garriga and Christopher J. Waller …

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 …

This paper examines the association between inflation, monetary policy and U.S. stock market conditions during the … second half of the 20th century. We use a latent-variable VAR to estimate the impact of inflation and other macroeconomic … shocks promote market booms and inflation shocks contribute to busts. Further, we find that inflation shocks can explain more …

The Shadow Open Market Committee was formed in 1973 in response to rising inflation and the apparent unwillingness of U … favored by the Shadow would have lowered inflation with less impact on output growth, and with less variability in output and … inflation, than a one-time reduction in monetary growth. We conclude that the Shadow articulated a sensible policy that would …

examine the inflation-output variability tradeoffs implied by optimal inflation and price level rules. In previous work with … the Neoclassical Phillips Curve, we found that the choice between inflation targeting and price level targeting depended … did not enter the aggregate supply function, then inflation targets were preferred to price level targets. When we start …