Motivated by the recent experience of the U.S. and the Eurozone, we describe the quantitative properties of a New …

fall of the great American inflation from the late 1960s to the early 1980s and of the great moderation of business cycle … outcomes across these periods is attributed to the time-varying volatility of shocks. The history for inflation is more nuanced …, as a more vigorous stand against it would have reduced inflation in the 1970s, but not completely eliminated it. In …

performance of the U.S. economy during the 1990s was a result of good shocks; and 4) the response of monetary policy to inflation …

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