Central banks create money to lend during credit crunches, which might lead to inflation. We examine whether the two … to buy assets. This feature allows for lending of last resort without creating inflation. Our analysis also provides a … new rationale for the "Bagehot rule": High interest rates prevent inflation, rather than mitigate the risk of lending …

Low and unresponsive inflation has been termed a “puzzle.” The paper describes a formula for which these conditions … variability of forward long-term inflation. Its U.S. inflation forecasts are comparable to recognized leaders in accuracy with … potential applicability to international economies as well.Inflation Elasticity, the responsiveness of inflation to monetary …