-sample estimation. In contrast to Orphanides (2002, 2003), I find that the Fed's response to the real-time forecast of inflation was … (2000). However, the response to inflation was strong before 1973 and gradually regained strength from the early 1980's …

inflation rates in shaping the response of real exchange rates to shocks. We document two facts about inflation … rate is a poor predictor of future inflation rates. We estimate a medium-size DSGE open-economy model that accounts … that accounts for the dynamics of exchange rates and their covariance with inflation are disturbances to the foreign demand …

the adoption of inflation targeting. However, the recent financial crisis and the call for central banks to focus more on …

their role in influencing the credibility of the monetary authority. We focus on measures of inflation expectations, the … mean reversion properties of inflation, and indicators of exchange rate risk. In addition we place some emphasis on whether …

rates, and the shift in the response of the term structure of interest rates to inflation and output. Although the theory …

stable inflation behavior will be generated -- is incorrect. This is because New Keynesian (NK) models are typically … consistent with the existence of RE paths with explosive inflation rates (in addition to one or more stable paths) that normally … imply the absence of explosive inflation. That result does not, however, justify negative conclusions about NK analysis. For …

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 …

forecasts of inflation and employment “look good,” in the sense of best fulfilling the dual mandate of price stability and … maximum employment, that is, best stabilize inflation around the inflation target and employment around its maximum level. It … also means publishing the policy-rate path and the forecasts of inflation and employment forecasts and, importantly …

interest rate in response to inflation and either the output or the unemployment gap, for the euro/dollar exchange rate with …

actions are explained solely by its forecasts of inflation and real activity. Finally, we explore the possibility of …