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. Here, the choice between an inflation target and a price-level target depends on characteristics of real output. If the … set objectives for a price level, not an inflation rate. …
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examine the inflation-output variability tradeoffs implied by optimal inflation and price-level rules. In previous work with … the Neoclassical Phillips Curve, we found that the choice between inflation targeting and price-level targeting depended … did not enter the aggregate supply function, then inflation targets were preferred to price-level targets. When we start …
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Federal Open Market Committee (FOMC) projections are important because they provide information for evaluating current monetary policy intentions and because they indicate what FOMC members think will be the likely consequence of their policies. Knowing the Fed’s objectives, their forecasts,...
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This article uses probability forecasts derived from options to assess evolving market uncertainty about Federal Reserve monetary policy actions in a variety of recent events and episodes. Options on federal funds futures contracts reveal a complete probability density function over possible...
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This article was originally presented as a speech at the Charlotte Economics Club, Charlotte, North Carolina, February 25, 2004.
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In this paper the author discusses the possibility that the U.S. economy may become enmeshed in a Japanese-style deflationary outcome within the next several years. To frame the discussion, the author relies on an analysis that emphasizes two possible long-run steady states for the economy: one...
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