This paper examines what strategies policymakers have used to both reduce and control inflation. It first outlines why … a consensus has emerged that inflation needs to be controlled. Then it examines four basic strategies: exchange rate … pegging, monetary targeting, inflation targeting, and the just do it' strategy of preemptive monetary policy with no explicit …

In recent years a number of industrialized countries have adopted a strategy for monetary policy known as `inflation … Friedman sense. We discuss the potential of the inflation-targeting approach for making monetary policy more coherent and …

This paper considers the problem of optimal long run monetary policy. It shows that optimal inflation policy involves … trading off two quite different considerations. First, increases in the rate of inflation tax the holding of many balances … of inflation raise capital intensity. As long as the economy has a capital stock short of the golden rule level …

We empirically characterize episodes of large inflation surges that have been observed worldwide in the last three … decades. We document four facts. (1) Inflation following surges tends to be persistent, with the duration of disinflation … exceeding that of the initial inflation increase. (2) Surges are initially unexpected but followed by a gradual catch-up of …

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 paper examines the 2021-2022 global inflation surge and the belated but aggressive monetary policy response to it … the global inflation surge: supply shocks from pandemic disruptions and Russia's invasion of Ukraine, accommodative fiscal … the initial inflation surge, in returning inflation to "2 point something" were confident enough in the prospects for …

The paper begins by tracing the origins of the case for inflation targeting in postwar US monetary history. It … describes five aspects of inflation targeting practiced implicitly by the Greenspan Fed. It argues that (1) low long run … inflation should be an explicit priority for monetary policy, (2) as a practical matter it is not desirable for the Fed to vary …