policy. First, I consider whether ignoring money means returning to the conceptual framework that allowed the high inflation … of the 1970s. Second, I consider whether models of inflation determination with no role for money are incomplete, or … evidence for a long-run relationship between money growth and inflation. (Here I give particular attention to the implications …

central banks to control inflation within their borders, at least in the absence of coordination of policy with other central … the ability of monetary policy to control inflation: by making liquidity premia a function of 'global liquidity' rather … to control the dynamics of inflation. …

to be important for optimal policy, that the optimal long-run inflation target is unaffected by the degree of potential …

policy. First, I consider whether ignoring money means returning to the conceptual framework that allowed the high inflation … of the 1970s. Second, I consider whether models of inflation determination with no role for money are incomplete, or … evidence for a long­run relationship between money growth and inflation. (Here I give particular attention to the implications …

function that penalizes inflation variations, deviations of output from potential, and interest-rate variability. Sluggish …

rational private sector expectations about housing prices and inflation, optimal monetary policy can be characterized by a … standard 'target criterion' that refers to inflation and the output gap, without making reference to housing prices. When the … increases (decreases), policy should adopt a stance that is projected to undershoot (overshoot) its normal targets for inflation …

setting where the private sector has rational expectations about future housing prices and inflation, optimal monetary policy … refers to inflation and the output gap only is optimal, as in the standard model without a housing sector. When the … unexpected housing price increases, policy should adopt a stance that is projected to undershoot its normal targets for inflation …