This paper examines the effectiveness of interest rate on curbing inflation before and after the year 2000 and show that it varies. Our analyses lay on two main empirical investigations: first, how long it takes for a rate hike of today to start and impact future inflation? and second, does...

This paper presents an econometric methodology to develop a transitory inflation measure, which reflects a consistent deviation from the mean reversion for at least four consecutive months, and shows it is distinct from white noise inflation. We then utilize this transitory inflation data to...