The Federal Reserve and other central banks tend to change short-term interest rates in
sequences of small steps in the same direction and reverse the direction of interest rate …

This study reviews the literature on the contribution of low inflation to economic growth and
the subsequent widespread adoption of inflation targeting as a monetary policy framework …

We consider how a central bank digital currency (CBDC) could transform all aspects of the
monetary system and facilitate the systematic and transparent conduct of monetary policy. In …

I develop and estimate a monetary business cycle model with nominal loans and collateral
constraints tied to housing values. Demand shocks move housing and nominal prices in the …

This paper develops a measure of US monetary policy shocks for the period 1969–1996 that
is relatively free of endogenous and anticipatory movements. Quantitative and narrative …

The new edition of a comprehensive treatment of monetary economics, including the first
extensive coverage of the effective lower bound on nominal interest rates. This textbook …

The standard theory of decision making under uncertainty advises the decision maker to
form a statistical model linking outcomes to decisions and then to choose the optimal …

We formulate an optimizing-agent model in which both labor and product markets exhibit
monopolistic competition and staggered nominal contracts. The unconditional expectation of …

The natural rate of interest—the real interest rate consistent with output equaling its natural
rate and stable inflation—plays a central role in macroeconomic theory and monetary policy …

The purpose of the paper is to survey and discuss inflation targeting in the context of
monetary policy rules. The paper provides a general conceptual discussion of monetary …