The dinner last night we shall all remember for a long time. We were fortunate enough to hear three Federal Reserve chairmen-each of them a giant in his own way - and a reply from Don Kohn that was not only insightful and thoughtful but moving too. Tributes are one thing, but the Bank of...

We use a monetary overlapping-generations model to discuss the cause and durability of the marked fall in the volatility of inflation in recent decades. In our model, agents have to forecast inflation, and they do so using two "heuristics." One is based on lagged inflation, the other on an...