(IMF) failed to predict the inflation surge during 2021-2023. The output gap, the unemployment gap, the New Keynesian … Phillips curve and inflation expectations did not give timely and relevant signals. The re-emergence of inflation thus threw … sudden acceleration of inflation post factum. This paper critically reviews the theoretical and empirical merits of three …

would have stabilized inflation more effectively. Tightening monetary policy would have curbed energy demand and caused the … increase in energy prices. This led to consumer price inflation in the euro area far beyond the ECB's inflation target of two … the ECB facing conflicting objectives of stabilizing the economy and combating inflation. Estimates show that while the …

deeper understanding of inflation's true nature, expectation formation, price-setting behavior, and monetary policy in … the early 2000s to the post-pandemic period. By analyzing the patterns of convergence and divergence in HCPI persistence … Whittle estimation method, the research examines the longmemory properties of headline inflation through monthly data from …

’s response to productivity shocks. This leads to a less reactionary monetary policy where model misspecification of imperfectly … misperception of product quality by the monetary authority, the principles for optimal monetary policy are, nonetheless, unchanged …

. inflation anchoring properties. This layout is then confronted with the policy framework in use in the euro area prior to the … dis-anchoring of long-term inflation expectations experienced in the euro area since 2013, however, suggests that the … policy framework could benefit from a rebalancing towards a formulation with stronger anchoring properties. The inflation aim …

weighted average of the inflation rates within the European Monetary Union (EMU) or reacted more strongly to the inflation rate … classify historical EMU data. Our findings suggest disproportional emphasis on the inflation rates experienced by southern EMU … heterogeneous in their economic development, including their inflation rates. This paper combines a New Keynesian model and a neural …

, UEMOA and CFA zones. Design/methodology/approach - In the assessments, monetary policy targets inflation and financial …Purpose - A major lesson of the EMU crisis is that serious disequilibria result from regional monetary arrangements not …. We also provide the speed of convergence and time required to achieve a 100% convergence. Findings - But for financial …