[...]This article explores the inflation puzzle andinvestigates whether compensation has acted as either atemporary … restraint on inflation or as the underlying sourceof a new inflation regime.2 After reviewing the recent behavior of inflation …, we specify and estimate a traditionalprice-inflation Phillips curve model over the 1965-96period. Our results show that …

[...]Inflation targeting in Canada was not the result oflegislation. However, as in New Zealand, the inflationtarget in …

inflation and output as much as it did in the1960s and 1970s? Should we expect the reduced volatility of theU.S. economy to last? …Several authors have documented a reduced variability ofoutput and inflation in the United States since the beginningof … standarddeviation of quarterly output growth has fallen 30 percent,while the standard deviation of inflation has decreased morethan 40 …