Inflation Control: Do Central Bankers Have It Right?
Abstract
Neo-Fisherites argue that conventional central banking wisdom has inflation control wrong, in that the way to increase (reduce) inflation is to increase (reduce) the central bank's nominal interest rate target. This article shows how two conventional macroeconomic monetary models—a New Keynesian (NK) model and a segmented markets model—exhibit neo-Fisherian properties. Thus, neo-Fisherism should actually be the foundation for conventional inflation control.
Citation
Stephen Williamson, "Inflation Control: Do Central Bankers Have It Right?," Federal Reserve Bank of St. Louis Review, Second Quarter 2018, pp. 127-50.
https://doi.org/10.20955/r.2018.127-50
Editors in Chief
Michael Owyang and Juan Sanchez
This journal of scholarly research delves into monetary policy, macroeconomics, and more. Views expressed are not necessarily those of the St. Louis Fed or Federal Reserve System. View the full archive (pre-2018).
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