Empirical evidence suggests that considerable differentials in inflation rates exist across households. This paper … investigates how central banks should react to household inflation heterogeneity in a tractable New Keynesian model. We include two … households that differ in their consumer price inflation rates after adverse shocks. The central bank reacts to either an average …

variables such as gross domestic product, unemployment rate and inflation rate. The eight linear regression models are developed …

In this study, annual time series data is utilized to estimate the effects of unemployment, wages and inflation on the …-run relationship, which reaches equilibrium in the long run. However, the effect of inflation and unemployment on trade enlargement is …