wake of the global financial crisis. The analysis reveals that an inflation-asset elasticity of 0.084 under Chairman Powell …’s tutelage accounted for more than 90 percent of the increase in consumer prices, compared with an inflation-asset elasticity of …

This paper examines the properties of interest rate rules aimed at controlling aggregate price inflation. Policies are … compared in two models having either flexible or sticky inflation The latter is assumed to derive from a traditional, adaptive …-expectations augmented Phillips curve. The flexible inflation model derives from the modem view, due to Gray (1976) and Fischer (1977), that …

linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due … properties of interest-rate rules whereby the central bank responds to a measure of past inflation. The consensus view that has … inflation are likely to ensure global stability provided that the coefficient on lagged interest rates is greater than unity …

-term inflation objectives. In the long term, monetary policy is most effective in achieving its objectives when the inflation target … is changed in response to the new economy and when the monetary authority attempts to stabilize both inflation and output … for in changing the assessment of the potential growth rate and the inflation target. …

From 2003, the Indian economy enjoyed a boom in growth coupled with moderate inflation for five years. The economy grew … persistence of inflation in an environment of falling economic growth has come out as a “puzzle” to policymakers’ and many in the … economy. The RBI compounded the problem by being sluggish and soft on inflation after the economy bounced back from the …

experiment of the past decade, stemming from a belief of the government that higher interest rates cause higher inflation … eventually a negative coefficient on inflation in the policy rule. In such an environment, was the exchange rate still a random … walk? Was inflation anchored? Does the "standard model" suffice to explain the broad contours of macroeconomic outcomes in …

conditions and to any form of intertemporal or nominal-real links. They are easy to employ in practice, using inflation protected … bonds to infer real rates. With a time-varying inflation target, they can implement arbitrary inflation dynamics, including …

In a simple New Keynesian model, we derive a closed form solution for the inflation persistence parameter as a function … inflation and the output gap, we show that the empirically observed changes in U.S. inflation persistence during the period 1975 …) view that inflation persistence should not be considered a structural parameter in the sense of Lucas. …