Models that treat innovations to the price of energy as predetermined with respect to U.S. macroeconomic aggregates are … the transmission of energy price shocks. Since exactly identifying assumptions are inherently untestable, this approach in …

One of the central questions in recent macroeconomic history is to what extent monetary policy as opposed to oil price … related to the oil market played a major role in causing both the major oil price increases of the 1970s and stagflation in … many economies. A competing view exemplified by Bernanke, Gertler and Watson (1997) is that the oil price shocks of the …

responses to the inflation triggered by oil price shocks are an important source of aggregate fluctuations in the U.S. economy … VAR models, the Federal Reserve was not responding to the inflation triggered by oil price shocks, as commonly presumed …. We show that there is no evidence of systematic monetary policy responses to oil price shocks after 1987 and that this …

U.S. retail food price increases in recent years may seem large in nominal terms, but after adjusting for inflation … in the real price of oil. That link, however, appears largely driven by common macroeconomic determinants of the prices … little to U.S. retail food price increases, because of the small cost share of agricultural products in food prices. There is …

We investigate both the rational explosive inflation paths studied by McCallum (2001), and the classification of fiscal … and monetary policies proposed by Leeper (1991), for stability under learning of the rational expectations equilibria (REE … domains for which the fiscal theory solution, in which fiscal variables affect the price level, can be a stable outcome under …

change in monetary policy. This paper uses a small dynamic rational expectations model with staggered price setting to study … how central bank preferences (and thereby monetary policy) affect the relation between nominal interest rates, inflation … expectations, and real interest rates. The benchmark parameters, including the Federal Reserve Bank’s loss function parameters, are …

heterogeneity in wage rigidity, such as the persistence in price and the wage inflation, which a standard New Keynesian model with …In this paper we estimate a New-Keynesian DSGE model with heterogeneity in price and wage setting behavior. In a recent … study, Coibion and Gorodnichenko (2011) develop a DSGE model, in which firms follow four different types of price setting …

countries with low inflation, the raw relationship between average inflation and the growth rate of money is tenuous at best … elasticities implied by theories of Baumol-Tobin and Miller-Orr. Finally, the sample after 1990 shows considerably less inflation … variability, worsening the fit of a one-for-one relationship between money growth and inflation, and generates a fairly low …

nominal interest and inflation rates. For close to a decade the principal focus of monetary policy has been on inflation … consideration, but at other times inflation control has been the major objective. We argue that this concentration on inflation has …

-float period. Changes in inflation are modelled as a nonlinear combination of growth and changes in import price inflation. Because … import price inflation is more volatile than overall inflation, policy that targets overall inflation may require growth to …This paper considers the existence of a path of GDP corresponding to steady inflation in the prices of domestic goods …