This paper analyzes the dramatic rise in U.S. inflation since 2020, which we decompose into a rise in core inflation as … measured by the weighted median inflation rate and deviations of headline inflation from core. We explain the rise in core with …-through into core from past shocks to headline inflation. The headline shocks themselves are explained largely by increases in …

"This paper summarizes recent developments in the theory and practice of monetary policy in a closed economy and … solution is evolving in the use of inflation targets"--Federal Reserve Bank of St. Louis web site …

The paper begins by tracing the origins of the case for inflation targeting in postwar US monetary history. It … describes five aspects of inflation targeting practiced implicitly by the Greenspan Fed. It argues that (1) low long run … inflation should be an explicit priority for monetary policy, (2) as a practical matter it is not desirable for the Fed to vary …

We finally have a complete theory of inflation under interest rate targets, that mirrors the long-run neutrality and … frictionless limit of monetary theory: Inflation can be stable and determinate under interest rate targets, including a k percent … banks set interest rate targets, and do not even pretend to control money supplies. How is inflation determined under an …

public finances. We show that when the ECB misses its inflation target this has large heterogeneous fiscal consequences for … missing their inflation targets. They are also sizeable …

Using a century of data, we show that Treasury convenience yield and inflation comove positively during the … inflationary 1970s-1980s, but negatively pre-WWII and post-2000. An inflation decomposition reveals that higher supply inflation … predicts higher convenience, while lower demand inflation follows higher convenience. In our model, inflationary cost …

We study the implications of the Fed's new policy framework of average inflation targeting (AIT) and its ambiguous … communication. The central bank has the incentive to deviate from its announced AIT and implement inflation targeting ex post to … inflation as a result of time inconsistency. First, it is optimal for the central bank to announce different horizons depending …