We explore a hypothesis about the take-off in inflation that occurred in the early 1970s. According to the expectations … trap hypothesis, the Fed was pushed into producing the high inflation out of a fear of violating the public's inflation … expectations. We compare this hypothesis with the Phillips curve hypothesis, according to which the Fed produced the high inflation …

. Deflation subsided by 2005. As soon as inflation appeared to stabilize near a rate of zero, the Bank of Japan rapidly reduced …

, and inflation has subsided without causing a major fluctuation in output. This seems to be a successful case of the …

case studies is that central banks adopt money growth targets when inflation threatens to get out of control. Central banks …

Should central banks, because of the zero-lower-bound problem, raise their inflation-rate targets? Several arguments … are relevant. (1) In the absence of the ZLB, the optimal steady-state inflation rate, according to standard New Keynesian … currency is feasible (even arguably attractive) and would remove the ZLB constraint on policy. (5) Increasing target inflation …

of forecasts other than the inflation forecast, and the degree of robustness of a desirable target criterion for monetary …

This paper develops a model of inflation inertia based on optimizing forward looking staggered price setting in a small … open economy. Unlike in current models of sticky prices, transitions to a lower steady state inflation rate take time even … these output losses and the gains from smaller inflationary distortions. For reasonable parameter values inflation …

In recent years, central bankers throughout the world have advocated that monetary policy shift toward inflation … targeting. Recent actions in the U.S. serve to highlight the desire of the Federal Reserve to keep inflation both low and stable …, while downplaying the likely output and employment consequences. But control of inflation requires both that one be able to …