In Korea's high-growth economy, the Bank of Korea had been willing to tolerate double-digit inflation, provided that it … upper threshold of tolerable inflation for the Bank of Korea was about 20 percent. It appears that the Bank of Korea …'s disciplined, rule-like approach to monetary policy was able to control inflation and keep it away from explosive levels, despite …

dynamic stochastic general equilibrium framework, we examine the effects of alternative monetary policy rules on inflation … persistence, the information content of monetary data, and real variables. We show that inflation persistence and the variability … of inflation relative to money growth depends on whether the central bank follows a money growth rule or an interest rate …

inflation risk. We calculate the term structure of inflation uncertainty in New Keynesian models when the monetary authority … achieves equilibria with substantially lower long-run inflation risk. With either sticky prices or sticky wages, a price path … target reduces the variance of inflation by an order of magnitude more than it increases the variability of the output gap. …

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 …

is more complicated becasue it depends on policy. It also depends on whether it is the inflation rate or the real …