When countries attempt to stabilize annual inflation rates that are greater than 40 percent, the domestic stock market … appreciates by 24 percent on average. The present value of the long-run benefits to shareholders of reducing high inflation … statistically insignificant, if the pre-stabilization inflation rate is less than 40 percent. Stock market responses also help …

High and persistent inflation has been one of the distinguishing macroeconomic characteristics of many developing … countries since the end of World War II. Countries afflicted by chronic inflation, however, have not taken their fate lightly … to inflation stabilization policies and balance of payment crises in developing countries …

Inflation targeting is shown to imply inflation forecast targeting: the central bank's inflation forecast becomes an … explicit intermediate target. Inflation forecast targeting simplifies both implementation and monitoring of monetary policy …. The weight on output stabilization determines how quickly the inflation forecast is adjusted towards the inflation target …

current and future inflation innovations to revalue government debt, reducing reliance on distorting taxes; (2) the role of … inflation in optimal fiscal financing increases with the average maturity of government debt; (3) as average maturity rises, it … is optimal to tradeoff inflation for output stabilization; (4) inflation is relatively more important as a fiscal shock …

inflation and activity. If policy makers are guided by the welfare criterion of the representative household, globalization … forces also lead monetary policy to be more aggressive with regard to inflation fluctuations but, at the same time, more …

This essay asks how high inflation arises and why it is costly to eliminate. Specifically, the paper discusses the … roles of price rigidity and credibility problems in explaining the costs of disinflation; the puzzle of persistent inflation … triggered by onetime macroeconomic shocks; and the case for returning to adaptive expectations in theories of 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 …

followed the German hyper-inflation. Significant real dislocations arose after the monetary reform; and these can be attributed … to a government policy which subsidized heavy industry through the inflation tax proceeds. The "credibility problem …