helps explain the well known puzzle that fundamental variables such as relative money supplies, outputs, inflation and …

framework that allowed the high inflation of the 1970s. Second, I consider whether models of inflation determination with no … monetary policy strategy of the empirical evidence for a long-run relationship between money growth and inflation. And fourth …, I consider reasons why a monetary policy strategy based solely on short-run inflation forecasts derived from a Phillips …

households. Moreover, we show how the movements in the pricing parameters are correlated with inflation. Thus, our results cast …

-arbitrage model, the short rate follows a version of the Taylor (1993) rule where the coefficients on the output gap and inflation … time. The overall response of the yield curve to output gap components is relatively small. In contrast, the inflation …-term bonds are sensitive to inflation policy shifts with increases in inflation loadings leading to higher short rates and …

This paper studies the transmission of shocks and the trade-offs between stabilizing CPI inflation and alternative … policy, and second, that the trade-off between stabilizing CPI inflation and the output gap strongly depends on which concept …

This paper analyzes the long-run determinants of inflation differentials in a monetary union. First, we aim at …some stylized facts relating the regional dispersion in headline inflation rates in the euro area as well as in the …-traded sector as the primary cause of price and inflation differentials, with shocks to productivity in the traded sector being …

In the summer of 2010, the Federal Reserve's and the Swedish Riksbank's inflation forecasts were below the former …

inflation and output in the United States. The shift occurred in the early 1980s. We then derive an equation that links these …

-pricing theory, is calibrated to analyze the effects of monetary policy and financial innovation. We show that inflation can raise …When limited commitment hinders unsecured credit, assets help by serving as collateral. We study models where assets … output, employment and investment, plus improve housing and stock markets. For the baseline calibration, optimal inflation is …

inflation, and that the optimal monetary policy is that which maximizes real balances. We also show that the real rate of … interest is not invariant to monetary policy: inflation lowers the real rate …