institutional and legal framework, can potentially mitigate the effects of inflation. Our conclusion is that a close coordination of … fiscal and income policies can help reduce the effects of adverse shocks to income without increasing inflation. Furthermore …

The resurgence of inflation since the late 2021 is now accompanied by a reversal of prospects of growth, reviving fears … prominent role is played by the fall of households' purchasing power, and hence consumption, owing to the inflation shock visà … inflation surprises, independent of restrictive monetary policy, is not present in the standard New Keynesian models for …

This paper examines the global drivers of inflation in 55 countries over the 1970–2022 period. We estimate a Factor … domestic shocks. We report three main results. First, global shocks have explained about 26 percent of inflation variation in a … typical economy. Oil price shocks accounted for only about 4 percent of inflation variation, but they had a statistically …

In most highly-developed economies, governments have handed management of inflation entirely over to their central … banks, and for good reason. With inflation largely beaten by central bankers for nearly five decades, there has been little … ideal. While central banks today say that they are aiming for a "soft landing" in which inflation slows but major economies …

We explore how members of a collective pension scheme can share inflation risks in the absence of suitable financial …

Does a higher inflation target for central banks help to reduce the risk of hitting the zero lower bound (ZLB) on … nominal interest rates? In the standard New Keynesian model, a higher inflation target changes the price-setting behavior of … firms in a substantial way. Specifically, firms become more forward-looking, inflation is more volatile and, thereby, the …

How much does quality adjustment matter in measuring consumer price inflation? To address this question, we use … inflation only by 0.06 percentage points, which is balanced out by an increase due to quantity adjustment (e.g. a smaller … deriving the distribution of member states' cumulative inflation rates for typical quality-adjusted products. Our macro …

Do people estimate current and future inflation by recalling how prices for specific products have changed? In an … experiment carried out in 2019 when inflation was low and stable, we compared people’s direct estimates of inflation with … by other information such as media reports. A second experiment was carried out in May 2022 when inflation was high …

This paper examines the costs associated with the level and variability of inflation in the context of a general …. We find that the GE welfare costs of inflation are substantially larger than those computed with the CE measure …

In density forecasts, respondents are asked to assign probabilities to pre-specified ranges of inflation. We show in … implications for survey design and how central banks can adjust the response scales during times of high inflation …