.S. headline inflation rate. This paper compares alternative approaches to filtering out the transitory effects of these industry … price changes and measuring the underlying or core level of inflation over 2020-2021. The Federal Reserve's preferred … measure of core, the inflation rate excluding food and energy prices (XFE), has performed poorly: over most of 2020-21, it is …

We study how changes in the value of the steady-state real interest rate affect the optimal inflation target, both in …-for-one: increases in the optimal inflation rate are generally lower than declines in the steady-state real interest rate. Our approach … allows us not only to assess the uncertainty surrounding the optimal inflation target, but also to determine the latter while …

determine inflation in this regime, so I base the analysis on the fiscal theory of the price level. I find that monetary policy … can peg the nominal rate, and determine expected inflation. With sticky prices, monetary policy can also affect real … interest rates and output, though higher interest rates raise output and then inflation. The conventional sign requires a …

stability under adaptive learning for interest rate rules that respond to inflation measures differing in their degree of price … stickiness. We find that rules responding to headline inflation measures that assign a positive weight to the inflation of the … the inflation of the sector with high price stickiness. By this we mean that they are more prone to induce non …