, inflation persistence has been the exception, rather than the rule, with inflation estimated to have been highly persistent only … during the period between the floating of the pound, in June 1972, and the introduction of inflation targeting, in October … inflation and the rates of growth of both narrow and broad monetary aggregates at the very low frequencies, thus countering the …

inflation, interest rate changes and the business cycle. This exposure, while not problematic in times of low interest rates …, moderate inflation and economic expansion, amplifies the risk to the value of households' investments if inflation increases …

-term inflation expectations. Since oil-price shocks now represent a less-stagflationary policy tradeoff, we show why the Federal …