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 …

prominent role in the conduct of monetary policy. A modified Taylor Rule would depend on a long-term measure of inflation having …-emptive anti-inflation policy in the middle of the expansions when housing is not so sensitive to interest rates, making it less … likely that anti-inflation policies would be needed near the ends of expansions when housing is very interest rate sensitive …

the fall in trend inflation. I develop a method for estimating the sacrifice ratio in individual disinflation episodes …, and apply it to 65 episodes in moderate-inflation OECD countries. In this sample. the sacrifice ratio is decreasing in the … inflation are unclear …

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 …