Several empirical papers have established the fact of a negative price-output correlation for the United States in the post WWII era. Much of this work appears to interpret the sign of this correlation under the assumption that monetary policy is passive. This paper uses a simple aggregate...

It is commonly believed that a monetary policy that targets the price level reduces the long-term variability of the price level but only at the cost of increased variability in both inflation and output. This paper shows that this result may not hold so long as increases in the real rate of...

It is widely accepted that the character of U.S. business cycles has changed in the post World War II era. In particular, as measured by the NBER business cycle dates, business expansions have grown from an average of 26.5 months in the prewar period to 51.5 months in the post-war period....