counterintuitive inflation reversals where the effect of the interest rate peg can switch from highly inflationary to highly …

unreasonably large inflation response. We pursue this simple test in three variants of the familiar dynamic new Keynesian (DNK …) model. All of these models fail this test. Further some variants of the model produce inflation reversals where an interest …

1980's. In particular, inflation persistence has declined sharply. The paper demonstrates that this decline is consistent …) the central bank more aggressively responds to inflation …

can account for nearly two thirds of the improved inflation performance of these nations over the last two decades …

than rules that also include current or future inflation …

The dollar's depreciation during the early floating rate period, 1973-1981, was a symptom of the Great Inflation. In …