The fiscal theory of the price level (FTPL) has attracted much attention but disagreement remains concerning its defining characteristics. Some writers have emphasized implications regarding interest-rate pegging and determinacy of rational expectations solutions, whereas others have stressed...

Recent analysis by Clarida, Galí, and Gertler (1999), Jensen (2002), Svensson and Woodford (1999), Walsh (2002), and especially Woodford (1999a, 1999b, 2000) has been highly productive in advancing the profession’s understanding of optimal monetary policy. Specifically, these papers emphasize...

This paper studies the Great Inflation in Canada, Australia, and New Zealand. Newspaper coverage and policymakers’ statements are used to analyze the views on the inflation process that led to the 1970s macroeconomic policies, and the different movement in each country away from 1970s views. I...

We reconsider the connection between financial crises and economic recoveries in the postwar United States. We proceed in two steps. First, we provide a chronology of financial crises in the United States. We make the case that the postwar period prior to 2007 should be characterized as...

Incluye bibliografía ; We examine the role of money in three environments: the New Keynesian model with separable utility and static money demand ; a nonseparable utility variant with habit formation ; and a version with adjustment costs for holding real balances. The last two variants imply...

Few economic events of recent years have attracted as much attention as the announcement by the People?s Bank of China on July 21, 2005, that henceforth the exchange rate of the Renminbi (RMB) would not be kept fixed in relation to the U.S. dollar, but would be managed relative to a basket of...

During the early months of 2003, there was something of a buzz in monetary policy circles about the prospect of a move toward inflation targeting as a policy regime for the Federal Reserve. One leading manifestation was a prominent article in the Wall Street Journal on March 31 concerning the...

The SOMC is a collection of individuals, so we do not always agree fully on all issues. There are certain similarities of viewpoint across individuals, however, that give a recognizable flavor to most of the committee?s analyses and positions. Three leading examples are beliefs that governmental...