In this paper, I consider the policy implications of two alternative structural interpretations of observed inflation persistence, which correspond to two alternative specifications of the new Keynesian Phillips curve (NKPC). The first specification allows for some degree of intrinsic...

This essay argues that central bank independence is more important today than at any time in history. Because fiscal incentives for inflation grow as government debt grows, and in view of the huge run-up in government debt in the 1980s, with prospects for continued growth in the 1990s, we...

Remarks at a Community Luncheon Hosted by the Federal Reserve Bank of Dallas, San Antonio, Texas, August 29, 2006 ; "The business of getting it right on inflation is not an easy task. I keep a close eye on all of the inflation measures--especially now, when high energy prices and utility bills...

Must the FOMC increase its target before inflation, or will inflation increase and cause the FOMC to increase its target?