poorly when knowledge is imperfect. In particular, policies that fail to maintain tight control over inflation are prone to … episodes in which the public's expectations of inflation become uncoupled from the policy objective and stagnation results, in … respond more aggressively to inflation under imperfect knowledge than under perfect knowledge. …

contain different forms of habit formation, specifications that have either the gap or real marginal costs driving inflation …

interest rate is raised or lowered from its existing level in response to inflation and changes in economic activity. These …

results show that the implicit inflation target and the relative weight placed on interest rate smoothing both declined with …

the monetary policy rule while the true output gap influences aggregate demand and inflation. I investigate the … produce a hump-shaped pattern in trend inflation that peaks around 1979 and a downward movement in trend inflation since 1995 …. Under a nominal income growth rule, these low-frequency movements in inflation are substantially reduced but not eliminated …

Using a small empirical model of inflation, output, and money estimated on U.S. data, we compare the relative … performance of monetary targeting and inflation targeting. The results show that monetary targeting would be quite inefficient …, with both higher inflation and output variability. This is true even with a deterministic money demand formulation. In this …

.S. can be characterized as having reacted in a moderate fashion to output and inflation gaps. In contrast, the parameters of …

inflation and fostering economic growth. …