inadequate policy tools and theory from the interwar period, set the stage for the Great Inflation of the 1970s. The lessons from … that experience have convinced monetary authorities to reemphasize the goal of low inflation, as it were, committing …

inflation target provides more short-run price stability than does the gold standard and, although it introduces a unit root … years. Relative to these regimes, Fisher's compensated dollar (or pure price path targeting) reduces inflation uncertainty … uncertainty about inflation at long horizons. This long-run inflation uncertainty can be largely eliminated by introducing an …