"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 …

explain the variation across time and countries of inflation patterns. In our model's equilibrium, profit differentials … increasing in inflation. Depending on the distribution of price revision costs, if enough sticky price firms choose to revise … their prices, the monetary authority's benefit from inflation is reduced to the point that the model has a unique, low …