economies. In the environment of low inflation, the fading relationship between the price dynamics and the adjustments in the … hybrid NKPC parameters. The results advocate that a statistically significant relationship between inflation and the domestic … flatten as the inflation's sensitivity with respect to changes in economic slack diminishes. That notwithstanding, the impact …

The inability of central banks to attain their target inflation rates in recent years has raised questions about the … extent to which central banks can control the inflation process. This paper discusses the evolution of thought and evidence … since the 1960s on the determinants of inflation and the role that should be played by central banks. The paper highlights …

This paper provides an explanation for the run-up of U.S. inflation in the 1960s and 1970s and the sharp disinflation … by low inflation. However, prolonged episodes of high inflation ending with rapid disinflations can occur when … policymakers underestimate both the natural rate of unemployment and the persistence of inflation in the Phillips curve. I estimate …

This paper examines what strategies policymakers have used to both reduce and control inflation. It first outlines why … a consensus has emerged that inflation needs to be controlled. Then it examines four basic strategies: exchange rate … pegging, monetary targeting, inflation targeting, and the just do it' strategy of preemptive monetary policy with no explicit …

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 …