This paper discusses the likely evolution of U.S. inflation in the near and medium term on the basis of (1) past U ….S. experience with very low levels of inflation, (2) the most recent Japanese experience with deflation, and (3) recent U.S. micro … evidence on downward nominal wage rigidity. Our findings question the view that stable long-run inflation expectations and …

Long-term bond yields contain a risk-premium, an important part of which is compensation for inflation risks. The …

This paper examines the properties of interest rate rules aimed at controlling aggregate price inflation. Policies are … compared in two models having either flexible or sticky inflation The latter is assumed to derive from a traditional, adaptive …-expectations augmented Phillips curve. The flexible inflation model derives from the modem view, due to Gray (1976) and Fischer (1977), that …