positive if the central bank adopts closed-loop strategies that raise the real interest rate when inflation is above target … owing to fiscal deviations. More aggressive defence of the inflation target implies lower debt and higher welfare. Simple …

We propose a portfolio-balance model of the yield curve in which inflation is determined through an interest rate rule … Taylor principle implies that short-term nominal rates are adjusted more than one for one in response to changes in inflation …, the real return on nominal bonds depends positively on inflation. In equilibrium, inflation increases when there is an …

around 10% of its products. To assess the implications of partial price synchronization for inflation dynamics, we develop a …

that costpush shocks play an important role in understanding historical changes in inflation persistence. …

by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …