INFLATION - THE MAIN TARGET VARIABLE OF MONETARY POLICY
ION SUIUABSTRACT. Wagner holds that the many structural changes, which are associated with the globalization process, cause an increase in uncertainty surrounding monetary policy. Rogoff speculates that lower macroeconomic volatility has rationalized sharply higher prices for risky assets. Gavin claims that an important distinction between New Keynesian models and reality is the relative importance of long-run inflation uncertainty.