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 …

This paper documents the evolution of long-run inflation expectations and models the stance of monetary policy from … 1965 to 1980. A host of survey-based measures and financial market data indicate that long-run inflation expectations rose … with a constant inflation goal, our analysis indicates that the path of policy can be characterized by a reaction function …

linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due … interest-rate rules whereby the central bank responds to a measure of past inflation. The consensus view that has emerged is … inflation are likely to ensure global stability provided that the coefficient on lagged interest rates is greater than unity …

mechanically, buying and selling bonds in accordance with a Taylor policy rule based on expected inflation. In this setting we show … that stock market returns are much less than one-for-one related to inflation over a one-year holding period, which means …

innovations, and negatively correlated with inflation innovations. The disinflationary nature of news shocks is consistent with …

inflation rates in shaping the response of real exchange rates to shocks. We document two facts about inflation … rate is a poor predictor of future inflation rates. We estimate a medium-size DSGE open-economy model that accounts … that accounts for the dynamics of exchange rates and their covariance with inflation are disturbances to the foreign demand …