Skip to main content

Second Quarter 2018, 
Vol. 100, No. 2
Posted 2018-04-16

Inflation Control: Do Central Bankers Have It Right?

by Stephen Williamson

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.

Subscribe to our newsletter

Follow us

Twitter logo Google Plus logo Facebook logo YouTube logo LinkedIn logo
Back to Top