. Key to our estimation strategy is the use of survey-based expectations for inflation and output. We identify accommodating … shocks shift to the low volatility regime around 1985 whereas inflation shocks do so only around 1990, suggesting active … monetary policy may have played role in anchoring inflation expectations. Shocks and policy regimes jointly drive the …

for output growth and inflation from 1992 to 2011. We find strong evidence of time variation in the pool's weights …

low but still positive rates of inflation, provides an adequate approximation in welfare terms to the alternative of …

instability during 1820-1931, and that inflation rate shocks contributed to instability during 1972-99. Both the nature of …

-type interest rate feedback rules. That is, rules whereby the nominal interest rate is set as an increasing function of inflation … with a slope greater than one around an intended inflation target. This paper shows that such rules can easily lead to … chaotic dynamics. The result is obtained for feedback rules that depend on contemporaneous or expected future inflation. The …

If inflation expectations become firmly anchored at the inflation target even when average inflation deviates from the … target, the long-run Phillips curve becomes non-vertical. During 1997-2011, average inflation expectations in Sweden have … been close to the inflation target of 2 percent, whereas average inflation has fallen short of the target by 0.6 percentage …

This paper documents the evolution of long-run inflation expectations and models the stance of monetary policy from … 1965 to 1980. A host of survey-based measures and financial market data indicate that long-run inflation expectations rose … with a constant inflation goal, our analysis indicates that the path of policy can be characterized by a reaction function …

Taylor principle to control inflation or anchor inflation expectations. In the period leading up to the fiscal limit, the … more aggressively that monetary policy leans against inflationary winds, the more expected inflation becomes unhinged from … the inflation target. Problems confronting monetary policy are exacerbated when policy institutions leave fiscal …