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| List of Figures | |
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| List of Tables | |
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| Preface | |
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| The Interaction of Policy and Outcomes | |
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| Coordinating Price Information | |
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| Features of the Book | |
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| Related Work | |
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| The Plan of the Book | |
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| Outcomes and Policy: An Illustration | |
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| Inflation-Output Costabilization: The Data | |
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| Inflation Volatility | |
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| Output Volatility | |
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| Data on Inflation Uncertainty | |
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| Inflation-Stabilization Policy and IOCS | |
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| Policymakers and Information Coordination | |
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| Policy Indicators | |
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| The Federal Funds Rate Ratio | |
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| The Taylor Rule | |
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| Taylor Principle Deviations | |
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| The Interest Rate Volatility and IOCS Trade-Off | |
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| Summary | |
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| Policy Evolution: 1960 to 2000 | |
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| The 1960s: Deemphasizing Inflation Stability | |
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| The 1970s: Inflation Instability and Stagflation | |
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| The 1980s: Inflation Stability Reemphasized | |
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| The 1990s: Continuity and Preemption | |
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| Summary | |
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| The Role of Policymakers | |
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| The Theoretical Model | |
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| Price Level Adjustment | |
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| Aggregate Demand | |
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| The Policy Rule | |
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| Implementation | |
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| The Taylor Rule: Structure and Development | |
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| Summary | |
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| Policy and Aggregate Variability | |
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| Feasibility | |
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| Equilibrium Inflation and Alternative Target Mixes | |
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| Equilibrium Output and Alternative Target Mixes | |
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| Aggregate Variability | |
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| The Policy Rule and Inflation Variability | |
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| The Crossover Effect of Output Targeting (CEOT) | |
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| The Policy Rule and Output Variability | |
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| The Crossover Effect of Inflation Targeting (CEIT) | |
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| Summary | |
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| Appendix to Chapter 5 | |
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| Solving the System | |
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| The Optimal Policymaker Role | |
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| Optimal Policy Target Emphasis | |
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| Regime and Preference Shifts and IOCS | |
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| Feasible Policy Weight Ranges | |
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| IOCS in the Presence of Exogenous Shocks | |
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| Summary | |
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| Appendix to Chapter 6 | |
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| The Interest Rate Volatility and IOCS Trade-Off: A Test | |
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| Coordination Dynamics | |
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| Coordinating Inflation Forecasts | |
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| Empirical Implications of the Theoretical Model | |
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| The Relative-Real-Wage Contract Specification | |
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| The IS Specification | |
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| The Taylor Rule | |
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| Stability Analysis | |
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| The Equilibrium Inflation Rate | |
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| Expectational Stability | |
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| Policy and Inflation Dynamics | |
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| Inflation Persistence | |
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| Inflation Volatility | |
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| Tests | |
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| Estimates of Inflation Persistence | |
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| The Appropriate Structural Break and Policy Effectiveness | |
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| Estimates of Inflation Persistence and Volatility | |
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| Summary | |
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| Appendix to Chapter 7 | |
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| A Brief Summary of the Adaptive Learning Approach | |
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| Inflation-Stabilizing Policy: Robustness | |
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| The Model | |
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| Determinacy | |
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| Adaptive Learning by Agents | |
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| Model Illustrations | |
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| Learning Dynamics | |
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| Inflation Persistence | |
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| Summary | |
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| Conclusion and Implications | |
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| Implications for Policymakers | |
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| Institutional Reform and Information Coordination | |
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| Implications for Future Research | |
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| The Need for Comparative Analysis | |
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| The Effect of Political and Social Forces on Policy | |
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| Long-Term Consequences | |
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| Final Thoughts | |
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| References | |
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| Index | |