resources and the contemporaneous behavior of inflation. The primary policy prescription deriving from this view is that the Fed … has failed to control inflation when it has not responded vigorously enough to observed inflation. However, there are … reasons to question this understanding of how the Fed controls inflation. If the Fed creates inflation, it is better to pursue …

contractionary monetary policy lowers inflation in the short run and increases it in the long run. Also, lump-sum taxes affect output … and inflation, as the literature on the fiscal theory of the price level suggests, but the effects are attenuated with …

. Among other things, we show that the optimal policy implicitly incorporates inflation targeting. We also characterize the … gains from making a credible commitment to fight inflation. In contrast to conventional wisdom, we show that gains from …

of inflation. It investigates the rule followed by the People's Bank of China (PBoC) by considering both the structural … inflation targeting. While the PBoC's behaviour up to 2001 was reminiscent of that in the inflation-accommodating G3 economies … the post-1979 anti-inflation (forward-looking) policy of the G3. An accurate estimation of the monetary policy rule from …

inflation follow from an international acceptance of these ideas? And how did a consensus theoretical model develop in academia … model) reinforces key advances: the priority for price stability, the targeting of core rather than headline inflation, the … importance of credibility for low inflation, and preemptive interest rate policy supported by transparent objectives and …

central bank transparency. Monetary policy can deviate from active inflation stabilization and agents conduct Bayesian … welfare declines. Announcing the future policy course raises uncertainty in the short run by revealing that active inflation …

inform the fiscal rules that countries choose to follow. It makes two points: (1) monetary policy control of inflation …