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 …

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 …

We study how changes in the value of the steady-state real interest rate affect the optimal inflation target, both in …-for-one: increases in the optimal inflation rate are generally lower than declines in the steady state real interest rate. Our approach … allows us not only to assess the uncertainty surrounding the optimal inflation target, but also to determine the latter while …

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 …

and inflation in the member countries. Stress in a country is defined as the difference between the country's actual short …

This paper examines the drivers of fluctuations in global inflation, defined as a common factor across monthly headline … consumer price index (CPI) inflation in G7 countries, over the past half-century. We estimate a Factor-Augmented Vector … in global inflation. Second, the contribution of global demand and oil price shocks increased over time, from 56 percent …

(Applied Financial Economics, 13, 693-700, 2003) on inflation and output on stock returns and volatility is extended by … inflation, output growth, and interest rate, has weak predictor power on stock market volatility and returns. In line with the …

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 …