In recent years, activist monetary policy rules responding to inflation and the level of economic activity have been … advanced as a means of achieving effective output stabilization without inflation. Advocates of such policies suggest that … capacity as the primary underlying cause of the 1970s inflation and suggests that apparent differences in the framework …

In recent years, activist monetary policy rules responding to inflation and the level of economic activity have been … advanced as a means of achieving effective output stabilization without inflation. Advocates of such policies suggest that … capacity as the primary underlying cause of the 1970s inflation and suggests that apparent differences in the framework …

inflation and its target, and the gap between output and its potential. Under the opportunistic approach to disinflation a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output … stabilization when inflation is close to its target, allowing supply shocks and unforeseen fluctuations in aggregate demand to move …

of monetary policy. A hallmark of this approach is that the central bank focuses on fighting inflation when inflation is … high but focuses on stabilizing output when inflation is low. The implied policy rule is nonlinear. This paper compares the … behavior of inflation and output under opportunistic and conventional linear policies. Using stochastic simulations of a small …

A monetary policy strategy that keeps inflation expectations solidly anchored in line with a clearly communicated … nominal anchor succeeds in taming inflation scares and allows the Fed to respond more effectively to economic downturns. This … was a key policy message in Marvin Goodfriend’s 1993 article “Interest Rate Policy and the Inflation Scare Problem: 1979 …