The paper provides a unified analysis of globalization effects on the inflation-output tradeoff and monetary policy, in … tend to flatten the tradeoff between inflation and activity. Second, these globalization forces lead monetary policy to be … more aggressive with regard to inflation fluctuations but, at the same time, more benign with respect to the output …

to financial intermediaries. Injections to families produce an inflation tax while injections directly to financial … intermediaries provide an inflation subsidy that improves output, consumption, and welfare. This model helps explain why monetary …

responses of output, inflation, and money market mutual funds (MMMF) to a positive monetary shock. The idea of incorporating …

"harmful inflation" regime for higher nominal GDP growth rates, these results have strong implications for guiding recent …

We demonstrate the existence of a monetary policy tradeoff between price-inflation variability and output … empirically reasonable degree of nominal wage inertia, strict inflation targeting induces substantial output-gap volatility. …

. Our analysis improves upon existing work by endogenising the volatility of both output and inflation. Improved …

The paper provides an integrated analysis of globalization effects on the inflation-output tradeoff and monetary policy … flatten the Phillips curve, the tradeoff between inflation and activity. Second, the same globalization forces lead the … welfare-based monetary policy to be more aggressive with regard to inflation fluctuations, and at the same time, more benign …

rates, and the shift in the response of the term structure of interest rates to inflation and output. Although the theory …This paper shows that the theory of monetary policy rules is able to explain, predict, and help understand a variety of …

inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after …