resulting inflation scare worsens the real cost of disinflation. We derive a closed-form solution that retains the entire time … an inflation scare and prevent the entrenchment of above-target inflation. We show that the Fed fell behind the curve in … delays would have unanchored inflation expectations, aggravated the inflation scare and strengthened the inflation surge …

resulting inflation scare worsens the real cost of disinflation. We derive a closed-form solution that retains the entire time … an inflation scare and prevent the entrenchment of above-target inflation. We show that the Fed fell behind the curve in … delays would have unanchored inflation expectations, aggravated the inflation scare and strengthened the inflation surge …