inadequate policy tools and theory from the interwar period, set the stage for the Great Inflation of the 1970s. The lessons from … that experience have convinced monetary authorities to reemphasize the goal of low inflation, as it were, committing …

rate and the inflation rate. Our estimation method uses real-time data in these rates — as did the FOMC — and requires no a … response to a fluctuation in either the unemployment or the inflation rate depended strongly on the persistence of this …