Building on the results in Nalewaik (FEDS 2015-93), this work models wage growth and core PCE price inflation as regime … price inflation that becomes much larger after labor markets tighten beyond a certain point. The results are informative for … assessing the likelihood and risks of meeting certain inflation targets on a sustained basis …

autoregressive model for the inflation rate. By construction, our approach avoids a number of problems related to the GMM estimation … of the NKPC. We estimate the hybrid NKPC with quarterly U.S. data (1955:1–2010:3), and both expected future inflation and … lagged inflation are found important in determining the inflation rate, with the former clearly dominating. Moreover …

We consider what, if any, relationship there is between monetary aggregates and inflation, and whether there is any … paribus unitary relationship between inflation and money growth. Simulations of a New Keynesian model suggest that we should … allowance needed for the phase shift in the relationship between monetary growth rates and inflation. While financial innovation …

Currency substitution affects the mapping between social welfare and inflation by altering the underlying money demand … the actual pattern of currency substitution across varying rates of inflation and enables the study of an additional … inflation rate, which turns out to be 44% under baseline calibration, below which currency substitution decreases welfare and …

movements in aggregate output and inflation in response to a nominal shock. Two modifications of a standard one-quarter pre …, simulations based on estimated shocks to tfp and money growth suggest both output and inflation are too volatile relative to the …

This paper provides a fresh new insight into the dynamic relationship between money growth and inflation in China by … growth and inflation in the mid-1990s and the period since the early 2000s. Especially since the early 2000s, China …'s monetary policy has achieved much better performance in terms of inflation management compared to previous years. From a …

This paper explores bidirectional linkage between inflation and its uncertainty by observing monthly data of 11 Eastern … European countries. The methodological approach comprises two steps. First, inflation uncertainty series have been created by … choosing an optimal Generalized Autoregressive Conditional Heteroskedasticity- (GARCH) type model. Subsequently, inflation and …

rules, an inflation forecast-based rule with contemporaneous output gap (IFBG) is found to be the most efficient rule for … Indonesia. The rule suggests that the central bank should react strongly to inflation deviations from the target, react …

This study provides cross country robust evidence on interdependencies among inflation, output growth and respective … uncertainties for the current era of low inflation policies. We attribute the extant empirical disagreement on these relations to … means to assess the robustness of empirical findings. Over the entire cross section, we find that both inflation and …

We analyze the causal effects of real and nominal macroeconomic uncertainty on inflation and output growth by … inflation uncertainty diminishes growth rates, mainly at a high-inflation regime. Finally, real uncertainty has mixed effects on … average inflation, while the effect of nominal uncertainty is typically positive, especially so during inflationary periods …