solutions such as the conservative central banker and optimal inflation contracts. Our theoretical model also shows how an … inflation targeting range should be set and how it should respond to changes in the nature of shocks to the economy …

sustained inflation are small relative to the costs of unemployment. If a temporary reduction in unemployment causes a permanent … increase in inflation, the present value of the resulting future welfare costs may well exceed the temporary short-run gain …. Previous analyses have underestimated the cost of a permanent increase in the inflation rate because they have ignored the …

uncertainty about the composition or timing of a stabilization. Under full certainty, inflation may rise, fall, or remain constant … there is no simple correlation between changes in the budget deficit and inflation. With uncertainty about the timing OF a … stabilization, the inflation rate will most likely exhibit fluctuations and may overshoot its steady state value, even when real …

inflation: the "myopic? government approach and the "weak" government approach. In myopic government models inflation is the … deliberate outcome of politicians strategic behavior, while in weak government models inflation is the unavoidable result of a … political developments in 76 countries for the period 1971-1982. Using a number of alternative definitions of the inflation tax …

collapse of the Bretton Woods system between 1971 and 1973 was rising U.S. inflation since 1965. It was driven in turn by … imports and a ninety day wage price freeze—was that U.S. inflation, driven by macro policies, was the main problem facing the … Federal Reserve Chairman Arthur F. Burns, Nixon adopted wage and price controls to mask the inflation, hence punting the …

I investigate the effects of an increase in the nominal interest rate on inflation and output in the United States and …, nominal interest-rate increases that are perceived to be permanent cause a temporary decline in real rates with inflation … adjusting faster than the nominal interest rate to a higher permanent level. Estimated impulse responses show that inflation …

We argue that the Great Inflation experienced by both the United Kingdom and the United States in the 1970s has an … common doctrine underlying the systematic monetary policy choices in each country. The nonmonetary approach to inflation …

Forecasts of the rate of price inflation play a central role in the formulation of monetary policy, and forecasting … inflation is a key job for economists at the Federal Reserve Board. This paper examines whether this job has become harder and …, to the extent that it has, what changes in the inflation process have made it so. The main finding is that the univariate …

norms. At those moments governments turned to the printing press. The result was substantial inflation …

A key policy question is: How high an inflation rate should central banks target? This depends crucially on the costs … of inflation. An important concern is that high inflation will lead to inefficient price dispersion. Workhorse New … Keynesian models imply that this cost of inflation is very large. An increase in steady state inflation from 0% to 10% yields a …