In the New Keynesian Rational Expectations model with a Neo-Fisherian Monetary Policy Rule

Question

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In the New Keynesian Rational Expectations model with a Neo-Fisherian Monetary Policy Rule, the central bank will only temporarily undershoot its inflation target for one period. This is because the Neo-Fisherian monetary policy rule indicates that raising nominal interest rates leads to a decrease in inflation. In the short run, however, this effect may be small, and as a result, raising interest rates may actually lead to lower inflation. But over time, as inflation expectations adjust to the central bank's actions, raising nominal interest rates will lead to lower inflation. Therefore, the central bank will only undershoot its inflation target for, at most, one period.

In the New Keynesian Rational Expectations Model with a Neo-Fisherian