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,...

Because food prices are no longer volatile, it makes little sense to exclude them anymore from calculations to determine core inflation.

We all know the size of the Fed chairman's briefcase as a policy indicator is a joke. But would knowing what's inside the briefcase be of real help?

This article presents global solutions to standard New Keynesian models with a zero lower bound (ZLB) constraint on the nominal interest rate. Rather than focus on specific sequences of shocks, we provide the solution for all combinations of technology and discount factor shocks and a thorough...

At a time when past rules of thumb seem inadequate, the author briefly reviews the connection between money and prices.

An argument for an institutional reform to lengthen the reserve- accounting period from one week to four weeks and to stagger the reserve-accounting periods among four groups of banks. Such staggered- reserve accounting would allow the Federal Reserve to set operating targets for total reserves.

If the central bank follows an interest rate rule, then inflation is likely to be persistent, even when prices are fully flexible. Any shock, whether persistent or not, may lead to inflation persistence. In equilibrium, the dynamics of inflation are determined by the evolution of the spread...