area, Japan, and U.K.) a compression in the long-term yield spread exerts a powerful effect on both output growth and … inflation. Second, conditional on available estimates of the impact of the FED’s and the Bank of England’s asset purchase …

-form) properties of the economy. Based on estimated models for the Great Inflation and the most recent period, I show that, as a … played by monetary policy in exacerbating the Great Depression, causing the Great Inflation, or fostering the Great …

: lagged expectations about monetary policy influence the current inflation rate through an indexation rule. No structural … inflation persistence is assumed. We show that this model can capture stylized facts about short-run inflation dynamics both in … between the degree of inflation persistence and the stability and transparency of monetary policy. Thereby, our model can …