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

expected inflation. Such nominally sticky discount rates imply that increases in expected inflation directly lower firms' real … shocks and higher investment in response to government spending. Sticky discount rates imply that inflation has real effects … inflation expectations and permanently lowers the long-run inflation target in response to expansionary shocks, even when shocks …

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. …