This paper shows that the optimal monetary policies recommended by New Keynesian models still imply a large amount of inflation risk. We calculate the term structure of inflation uncertainty in New Keynesian models when the monetary authority adopts the optimal policy. When the monetary policy rules are modified to include some weight on a price path, the economy achieves equilibria with substa...

Although a decrease in the rate of Chinese inflation happens, it will still be higher than was before global financial crisis. The international economy continue to deteriorate 2022 due geopolitical tensions and slowdown economic development experience small recession 2023. Studies show that EPU (economic policy uncertainty) index strongly explains large changes equity markets like S&P 500 ...