The paper presents the welfare cost of inflation in a banking time economy that models exchange credit through a bank … welfare cost of a 10% inflation rate instead of zero, for comparison to other estimates, as well as the cost of a 2% inflation … rate instead of a zero inflation rate. The zero rate is specified as the US inflation rate target in the 1978 Employment …

short some 20 million jobs. Further, there is no reason to believe that the current exceptionally low inflation rates are … transitory. Quite the contrary: without significant fiscal efforts to restore the bargaining power of labor, inflation rates are …

population growth has lowered both the natural rate and inflation by about 0.4 percentage points in recent decades. …

by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …

Empirical evidence presented in this paper shows that the predictability of inflation at long horizons varies … systematic monetary policy succeeds in stabilizing the incipient unit root in inflation. The mechanism by which it does this … that monetary policy need not be so vigorous in reactions to inflation. This helps to explain why inflation rates in the U …

The term structure of inflation forecasts disagreement in the US can be summarized by two components: disagreement … about the trend inflation, and disagreement about the cyclical inflation. While the former has identical impacts on … forecasting horizons. Only the cyclical inflation disagreement has a significant impact on monetary policy efficacy. High …

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 …

inflation in Japan. We develop a New Keynesian search/matching model that features heterogeneities in age and firm … and the real interest rate. They also lead to similar movements in the inflation rate when the monetary policy follows the …

inflation. This paper shows that previously shown results are robust to changes in the specification of interest rate rigidity …. Results investigated include: (1) the procyclicality of inflation, (2) inflation control through interest rate manipulation,(3 …) the persistence of inflation since World War II, (4) the Great Moderation under inflation targeting, (5) real rate …