This paper provides an explanation for the run-up of U.S. inflation in the 1960s and 1970s and the sharp disinflation … by low inflation. However, prolonged episodes of high inflation ending with rapid disinflations can occur when … policymakers underestimate both the natural rate of unemployment and the persistence of inflation in the Phillips curve. I estimate …

inflation and activity. If policy makers are guided by the welfare criterion of the representative household, globalization … forces also lead monetary policy to be more aggressive with regard to inflation fluctuations but, at the same time, more …

This paper examines what strategies policymakers have used to both reduce and control inflation. It first outlines why … a consensus has emerged that inflation needs to be controlled. Then it examines four basic strategies: exchange rate … pegging, monetary targeting, inflation targeting, and the just do it' strategy of preemptive monetary policy with no explicit …

A parsimonious model of shifting policy regimes can simultaneously capture expected and actual US inflation during 1969 …. Private sector learning about policymaker type leads to a reputation state variable. We use model inflation forecasting rules … to extract state variables from SPF inflation forecasts. US inflation is tracked by optimal policy without commitment …

Does a successful disinflation contribute to the anchoring of inflation expectations? We provide novel survey evidence … on the dynamics of euro area firms' inflation expectations during the disinflation episode since 2022. We show that firms …' short term inflation expectations declined steadily towards the inflation target as the disinflation progressed. However, we …

shocks have their maximum impact on inflation with a substantial delay. Third, the change in inflation is positively …

unstable processes for output and inflation. That results holds in a" theoretical model that includes backward-looking IS an …

monetary policy used to reduce inflation. The evidence comes from a cross-country comparison: countries with larger decreases … in inflation and longer disinflationary periods have larger rises in the NAIRU. Imperfections in the labor market have …

the fall in trend inflation. I develop a method for estimating the sacrifice ratio in individual disinflation episodes …, and apply it to 65 episodes in moderate-inflation OECD countries. In this sample. the sacrifice ratio is decreasing in the … inflation are unclear …

The paper discusses the choice between inflation targeting and monetary targeting as a strategy for the Eurosystem, the … the Eurosystem. The choice between inflation targeting and monetary targeting is, in effect, a choice between high and low … transparency. Inflation targeting and monetary targeting, in practice, imply similar policy decisions, but monetary targeting …