expected inflation. The inability of the Fed to maintain a credible commitment to low interest rates in the face of increased … government spending and rising inflation led to the Fed-Treasury Accord of March 1951. Following the Accord, the external …

- than fixed-rate contracts. The source of impulse also matters: persistent inflation shocks have larger effects than … cyclical fluctuations in inflation and nominal interest rates. …

estimated model considers a monetary policy regime where the central bank targets overall inflation but is also concerned about … monetary authority should respond directly to non-tradable inflation instead of overall inflation. In particular, if … preferences are relatively biased towards inflation stabilization, responding directly to overall inflation results in better …

of inflation targeting in 1992 or central bank independence in 1997), we instead take a longer perspective, which … alter the monetary base; and the adherence by policymakers in the 1960s and 1970s to nonmonetary views of the inflation …