We develop an experimental framework to investigate the quantity theory of money and the real effects of inflation in … an economy where money serves as a medium of exchange. We test the classical view that inflation reduces output and … welfare by taxing monetary exchange. Inflation is engineered by constant money growth. We conduct three treatments, where the …

inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively …

rule that stabilizes output and inflation in an environment where endogenous boom-bust cycles in house prices can occur … borrowers are occasionally over-optimistic, the central bank should be less responsive to inflation, more responsive to output …-bust cycles in house prices, but prolongs inflation target horizons due to weak policy reactions to inflation fluctuations after …

same drop in magnitude. We then examine the usefulness of real-time gap estimates for forecasting inflation and find no … deterioration in forecast performance when inflation projections are conditioned on real time rather than on final estimates of the …

Like the gold standard, price level targeting (PT) involves not letting past deviations of inflation be bygones; both … output volatility and frequent resets. These problems reduce the expectational advantage of PT over inflation targeting …

We build a model for bond yields based on a small-scale representation of an economy with secular declines in inflation …, the real rate and output growth. Long-run restrictions identify nominal shocks that influence long-run inflation but do … results show that, before the anchoring of inflation around the mid-1990s, nominal shocks lifted the output gap and inflation …

containing information on real economic activity, inflation, interest rates and Divisia monetary aggregates produces the most …

analyze output gap revisions and assess the usefulness of these gaps in forecasting total CPI inflation and three newly … developed measures of core CPI inflation: CPI-median, CPI-trim and CPI-common. We also study whether labour-input gaps …, projected output gaps, and simple combinations of output gaps can add useful information for forecasting inflation. We find that …

by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …