@SteveRoth So if the inflation rate starts at an equilibrium of n%, increasing the interest rate will (cet par) lead to a transient decrease in the inflation rate to some rate <n% (same as before, the conventionally anticipated effect), but when the transient effect wears off, the new equilibrium at the new interest rate has inflation now at some rate *higher* than n%, rather than merely revering to n% as under a Ricardian regime. 3/