1979. Even if monetary policy is found to react only mildly to inflation pre-Volcker, the substantial degrees of bounded …

Abstract In this paper I develop a multi-sector model with price frictions, production networks, trend inflation and … different types of shocks to study how these conditions affect the properties of inflation and their implications for monetary … policy. Calibrating the model to the U.S. economy my results show that in this setting inflation becomes 30% less sensitive …

the UK economy. We find that a 1 percentage point increase in the policy rate reduces output by up to 0.6% and inflation …

, we find that monetary policy has persistent effects on real interest rates and breakeven inflation. Second, employing our …

theory. Since the price level should fall in the growing economy, introduction of negative inflation target is suggested … current state of positive inflation target. Possible criticism of this suggestion is anticipated and disproved in this paper …

Inflation targeting is strictly suboptimal when economic actors have incomplete information about the state of the … ask what monetary policy rule is optimal. In contrast to sticky price or sticky information models, inflation and price …

. Macroeconomic outcomes are measured by the mean levels and the volatility of output (gaps), unemployment and inflation. We present … point inflation target appears to outperform a target range. Third, the (relative) performance of low-for-long (L4L … space is small, but if the space is larger these rules, while stabilizing inflation, may lead to more volatility in the real …