Recent empirical evidence by Fair (2002,2005) and Giordani (2003) shows that a positive inflation shock with the … Synthesis' literature. This paper reconsiders the effects of inflation shocks in a simple New Keynesian framework extended to … include wealth effects. It is demonstrated that, following an inflation shock, the decline of output coupled with passive …

them monetary policy shocks the Fed injected into inflation. …

moderating short-term interest rates to achieve the two-fold goals of stabilizing economic growth in the short-term and inflation … in the long-term. One important question is why monetary policy makers focus on core inflation instead of headline … inflation. Therefore, the main goal of this research article is to study the pattern of monetary policy responses to commodity …

inflation, similar to that of the Greenbook forecasts. This leads us to conclude that the stochastic dimension of the US economy … shock and inflation by the nominal shock. The implication is that, by tracking any forecastable measure of real activity and …

shock. We find that flexible inflation targeting regime using interest rate rules (IRRs) with floating exchange rates is …-DSGE model, we show that inflation targeting regime using exchange rate rules (ERRs) reduces welfare losses significantly …