The paper discusses policy relevant models, going from (1) chronic inflation in the 20th century after WWII, to (2 …

extensive case study, we demonstrate how incorporating survey data on inflation expectations can address a number of otherwise …

perform 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 stagflation … effective communication of a central bank's inflation objective and of continued vigilance against inflation in anchoring …

This paper has three parts. Part 1 constructs a classical economic model of inflation, augmented by a complete set of … core monetary model explains the history of inflation after WWII and Part 3 provides evidence to show that the … unconventional monetary policy, followed in the wake of the 2008 financial crisis, was effective in stabilizing inflation …

stable inflation behavior will be generated -- is incorrect. This is because New Keynesian (NK) models are typically … consistent with the existence of RE paths with explosive inflation rates (in addition to one or more stable paths) that normally … imply the absence of explosive inflation. That result does not, however, justify negative conclusions about NK analysis. For …

What monetary policy framework, if adopted by the Federal Reserve, would have avoided the Great Inflation of the 1960s … policy strategies. We show that policies constructed using modern optimal control techniques aimed at stabilizing inflation … stabilizing economic activity, an optimal control approach would have failed to keep inflation expectations well anchored …

This paper examines the effects of expected inflation on the responsiveness of output to nominal disturbances in the … framework of a localized markets model. The mechanism described in the theoretical part of the paper is that expected inflation … sensitivity of real output to these socks. The empirical implication of this proposition -- namely ,that expected inflation …

We propose a new approach to constructing inflation tracking portfolios. The key to this approach is the insight that … asset returns track expected inflation far better than they track current realized inflation. Thus, we can construct … portfolios that track next month's inflation much more closely than they track this month's inflation. We show this staggered …

appointment of Volcker marked a change in the conduct of monetary policy, but inflation dropped only when fiscal policy … accommodated this change two years later. In fact, a disinflationary attempt of the monetary authority leads to more inflation if … been confident about the switch, the Great Inflation would not have occurred and debt would have been higher. This is …

This paper presents a model of monetary policy in which a rise in inflation raises uncertainty about future inflation …. When inflation is low, there is a consensus that the monetary authority will try to keep it low. When inflation is high …