Remarks by Charles L. Evans, President and Chief Executive Officer, Federal Reserve Bank of Chicago Council on Foreign Relations New York, NY

Remarks for the Bank of Korea International Conference 2010, June 1, 2010 Seoul, Korea

We present a model embodying moderate amounts of nominal rigidities which accounts for the observed inertia in inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these...

We present a model embodying moderate amounts of nominal rigidities which accounts for the observed inertia in inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these...