appointment of Volcker marked a change in the conduct of monetary policy, but inflation dropped only when fiscal policy … accommodated this change two years later. In fact, a disinflationary attempt of the monetary authority leads to more inflation if … been confident about the switch, the Great Inflation would not have occurred and debt would have been higher. This is …

with a modest and protracted decline in inflation, following the rise in financial stress in 2008Q4. The model does so even … though inflation remains very dependent on the evolution of economic activity and of monetary policy …

perspective on the linkages among monetary policy, inflation, and the business cycle. It is argued that the adoption of an …

linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due … interest-rate rules whereby the central bank responds to a measure of past inflation. The consensus view that has emerged is … inflation are likely to ensure global stability provided that the coefficient on lagged interest rates is greater than unity …

inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model which … resolves this apparent micro - macro conflict. Our model is consistent with post-war U.S. evidence on inflation inertia even …

relative wage changes in the presence of price inflation are examined. Rigidity implies that unexpected inflation will raise … the variability of relative wage changes; contracting implies unexpected inflation reduces variability. Using data on … relative wage cnanges is reduced by greater price inflation. Most of the reduction is a response to unexpected inflation …