An examination of the monetary policy goals of the Federal Reserve System, with a discussion of the role of the M1 target.

An argument that a monetary policy aimed at eliminating long-run inflation would benefit society by removing price distortion, increasing economic growth, adding liquidity to the economy, and reducing uncertainty associated with price-level drift.

In this paper we model the contribution of monetary growth shocks to aggregate fluctuations. Our innovation is to combine persistent money growth shocks with taxes on nominal capital gains in a model in which the central bank operates policy using an interest rate rule. All three features are...

If the central bank follows an interest rate rule, then inflation is likely to be persistent, even when prices are fully flexible. Any shock, whether persistent or not, may lead to inflation persistence. In equilibrium, the dynamics of inflation are determined by the evolution of the spread...

More young people, poor people and minorities are buying homes these days, but not because of tax deductions or government affordable-housing programs.

To figure out what a central bank should look like, consider that most have three features in common: independence, transparency and a goal of low and stable inflation.

Because food prices are no longer volatile, it makes little sense to exclude them anymore from calculations to determine core inflation.