One decade of inflation targeting in the world offers lessons on the design and
implementation of inflation targeting, the conduct of monetary policy, and country …

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 …

Nominal interest rates may remain substantially below the averages of the last half century,
because central banks' inflation objectives lie below the average level of inflation, and …

The evolution of research on monetary policy over the past two decades has been dramatic.
The 1980's through the mid-1990's were dominated by work building on the insights of …

The paper reviews the recent literature on monetary policy rules. We exposit the monetary
policy design problem within a simple baseline theoretical framework. We then consider the …

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

This paper examines the magnitude of informational problems associated with the
implementation and interpretation of simple monetary policy rules. Using Taylor's rule as an …

The paper examines inflation targeting in a small open economy with forward-looking
aggregate supply and demand with microfoundations, and with stylized realistic lags in the …

0.5yt yt where it denotes the Fed's operating target for the federal funds rate, t is the inflation
rate (measured by the GDP deflator), yt is the log of real GDP, and yt is the log of potential …

I consider the desirability of the observed tendency of central banks to adjust interest rates
only gradually in response to changes in economic conditions. I show, in the context of a …