This paper uses the historical narrative record to determine whether inflation expectations shifted during the second … and the forecasts of contemporary business analysts, we show that inflation expectations increased dramatically. Second …, using an event-studies approach, we identify the impact on financial markets of the key events that shifted inflation …

strengthen the countercyclical behavior of markups and attenuate the response of inflation to fluctuations in output. …

empirical stylized facts. Pricing patterns mostly conform to these patterns. Most price changes are positive, and inflation is … productivity shock and positively by the output gap. Lagged real interest rate has a negative effect on prices, unless human …

will not believe such promises in future recessions. When the shock hits the economy sufficiently frequently, the incentive … to maintain reputation outweighs the short-run incentive to close consumption and inflation gaps, keeping the central …

, increased inflation and output due to higher government spending during a recession speed up the return of the policy rate to …

model does a good job of accounting for the joint behavior of labor and goods markets, as well as inflation, during the … capital played critical roles in accounting for the small size of the drop in inflation that occurred during the Great …

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 …