This paper examines the long-run effects of supply shocks (such as oil shocks) on inflation in the United States. The … persistence of supply shocks in U.S. inflation fell considerably during the period of Volcker's disinflation (1979-1982). My … the behavior of inflation expectations-agents expected shocks to persist in the pre-Volcker period, but not in the post …

unemployment. Our model succeeds in replicating the empirical fact of a downward sloping Phillips curve for low inflation rates and … an upward sloping curve for high inflation rates. The reason is that low inflation rates make saving, as opposed to …, when inflation exceeds a certain threshold, money is too costly to hold, which results in a decrease in output and an …

This paper studies the issue of whether money contains useful information about future inflation in a panel of nine … developed countries. A low frequency estimate of excess money growth is compared to an estimate of the inflation trend following … the discussion in Woodford (2007). The empirical analysis shows that money contains more information about future CPI-inflation …

optimal. This is because inflation makes saving for retirement less attractive, such that young agents optimally choose to … increase their consumption at the expense of lower savings. On the other hand, old agents consume less due to the inflation tax …. We show that for low inflation rates, the former effect dominates the latter, such that the Friedman rule is not optimal …

We consider standard monetary-policy rules with inflation-rate targets and interest-rate or money-growth instruments …-target equilibria (BTE) with inflation always below target and constant or asymptotically approaching or eventually reaching a below … rate above a lower bound. We construct monetary-policy rules, that preclude BTE, some of which are monotonic in inflation …