Using a century of data, we show that Treasury convenience yield and inflation comove positively during the … inflationary 1970s-1980s, but negatively pre-WWII and post-2000. An inflation decomposition reveals that higher supply inflation … predicts higher convenience, while lower demand inflation follows higher convenience. In our model, inflationary cost …

We analyze the impact of fiscal and monetary stimulus in an economy with mortgage debt, where inflation redistributes … inflation, increasing consumption demand and house prices. The power of fiscal stimulus grows when borrowers are more indebted …. We then show quantitatively that transfers followed by easy monetary policy cause a surge in inflation which helps …

) stabilize financial conditions beyond their direct effect on output and inflation gaps, even though stable financial conditions … targeting could have reduced the variance of the output gap, inflation, and interest rates by 36%, 2%, and 6%, respectively, and …

to stabilize inflation. Yet, market forces are likely to generate such inflows. Optimal capital flow management instead …

inflation expectations and permanently lowers the long-run inflation target in response to expansionary shocks, even when shocks … expected inflation. Such nominally sticky discount rates imply that increases in expected inflation directly lower firms' real … shocks and higher investment in response to government spending. Sticky discount rates imply that inflation has real effects …