A Survey of Inflation Theory

TL;DR: In this article, the authors investigate Celso Furtado's role in the broad controversy between structuralists and monetarists about inflation and stabilization that took place in Latin America between the mid-1950s and early 1960s.

Abstract: Monetary policy is now conducted by targeting a very short-term interest rate. The Fed and other central banks attempt to control the price level by manipulating aggregate demand by adjusting their interest rate target. At best, money's role is tertiary. Indeed, a few prominent and influential macroeconomists have suggested that money is not essential, or perhaps is irrelevant, for the determination of the price level. Against this backdrop, this paper argues that the essential feature of money is that it guarantees "final payment" and is essential for price determination. It also suggests that the ability of the central banks to control interest rates may be greatly exaggerated.

TL;DR: In this paper, the authors analyzed the informational content of the monthly introductory statements of the European Central Bank (ECB) president explaining interest rate decisions with regard to inflation expectations of financial market experts for the euro area from February 1999 to June 2007.

TL;DR: In this article, the authors investigate the nature of the bias and how it arises and investigate how to avoid it in periods of high anticipated inflation, and propose a solution to overcome it.