interest rates lead to changes to inflation in the opposite direction. I conclude that this is how credit crunches and monetary … tightening reduce inflation. I simulate different monetary policy through a variable inflation target. Wild swings in the target … kill the persistence in inflation, which may explain the absence of persistence under the Gold Standard. A stable target …

inflation surge and derives projections for the future. In 2020, the Fed took the negative prescribed rates, which were far … clearly signaled the need for tightening because of the rise of inflation, yet the Fed waited until spring 2022 to raise the … federal funds rate. With the decline of inflation over the course of 2023, the rules' prescriptions have also come down. They …