. We find that for all parametrizations with an equilibrium inflation rate of about 2 percent, there is a second … equilibrium with an inflation rate just above 10 percent. Thus, the model can simultaneously account for the low and high … inflation episodes in the United States. We carefully characterize the set of Markov equilibria along the parameter space and …

In this paper, I consider the policy implications of two alternative structural interpretations of observed inflation … specification allows for some degree of intrinsic persistence by way of a lagged inflation term in the NKPC. The second is a purely … specification, most of the observed inflation persistence is attributed to fluctuations in the underlying inflation trend, which are …

temporarily explosive paths depends more on uncertainty about policy-feedback parameters than about the long-run inflation target …. For that reason, the central bank can at least achieve low average inflation. Its ability to move feedback parameters away …

Monetary policymakers and long-term investors would benefit greatly from a measure of underlying inflation that uses … all relevant information, is available in real time, and forecasts inflation better than traditional underlying inflation … measures such as core inflation measures. This paper presents the 'FRBNY Staff Underlying Inflation Gauge (UIG)' for CPI and …

underlying inflation (UIG) at time horizons of relevance for monetary policymakers for both CPI and PCE. The UIG uses a broad … data set allowing for high-frequency updates on underlying inflation. The paper complements the existing literature on U …