Gern, Klaus-Jürgen; Kamps, Christophe; Scheide, Joachim - 2002
will raise key interest rates to the neutral level which should prevail when the output gap is closed and when inflation is … consequence, velocity will return to its trend without an increase in inflation. This implies, however, that the expected slowdown … consequence of the higher than expected rate of inflation. In our forecast, wage increases will average about 3 percent both this …