Chari, and Lawrence Christiano (2003) have shown that when the central bank’s commitment to fighting inflation is perceived to be weak, as may have been the case during the 1970s, self-confirming increases in expected inflation are possible and will tend to destabilize the economy. 14  See Bernanke (2004) for additional discussion.
Regretfully, I was not able to be here when you began discussing the interlinkages between real estate taxation and macroprudential policy instruments, and shared country experiences in residential real estate taxation. Still, today’s agenda promises us another intensive day with engaging discussions and, hopefully, some helpful answers.