This paper advances the hypothesis that the transition from there-is-little-central-banks-can-do-to-control-inflation … to inflation targeting occurred because central banks, especially the Federal Reserve, demonstrated that central banks … can control inflation rather than a consequence of marked improvement in the professions understanding of how monetary …

incorporate some “rule-of-thumb†price-setters that index to inflation over recent periods. These models are estimated for the … inertia in inflation than the baseline sticky-price model, its overall fit is worse. The results point toward substantial … gains in terms of fit for hybrid models with indexation that smoothes through quarterly volatility in inflation and clarify …

average inflation rate in an international cross-section. We find that inflationary regimes in certain countries are duration …

monetary policy in particular. The form in current widespread use includes both forward looking expected inflation and lagged … inflation. The presence of lagged inflation is necessary to generate predicted inflation persistence to match actual persistence … convincingly predict inflation persistence …

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 …