properly accounts for asset pricing facts. I find that the Ramsey optimal monetary policy yields an inflation rate above 3 ….5% and inflation volatility close to 1.5%. The same model calibrated to a counterfactually low equity premium implies an … optimal inflation rate close to zero and inflation volatility less than 10 basis points, consistent with much of the existing …

unconventional policy since early 2009. Our analysis suggests that the net stimulus to real activity and inflation was limited by the … occurred in the absence of the unconventional policy actions -- does not occur until early 2015, while the peak inflation … effect -- adding ½ percentage point to the inflation rate -- is not anticipated until early 2016 …

The pickup in the U.S. inflation rate to its highest rates in forty years has led to renewed attention being given to … the Great Inflation of the 1970s. This paper asks with regard to the Great Inflation: “How did it happen?” The answer … guided by a faulty doctrine—a nonmonetary view of inflation that perceived the concerted restraint of aggregate demand as …

inflation and deflationary biases in inflation expectations. In a model with an occasionally binding zero-lower-bound constraint …, we show that an inflation bias as well as a deflationary bias exist as a steady-state outcome. We assess the predictions … of this model using unique individual-level inflation expectations data across nine countries that allow for a direct …