We analyse the incidence of endogenous entry and firm TFP-heterogeneity on the response of aggregate inflation to … distribution of firms in Spain. We then compare the inflation response to technology, interest rate and entry cost shocks, among … others. We find that structures in which large (more productive) firms predominate tend to deliver more muted inflation …

benefits, on inflation volatility. With this purpose, we build a New Keynesian model with search and matching frictions in the … inflation in response to shocks, by affecting the volatility of the three components of real marginal costs (hiring costs … inflation volatility, due to the small impact of changes in the volatility of the labor market on inflation dynamics. …

An exogenous oil price shock raises inflation and contracts output, similar to a negative productivity shock. In the … standard New Keynesian model, however, this does not generate a tradeoff between inflation and output gap volatility: under a … strict inflation targeting policy, the output decline is exactly equal to the efficient output contraction in response to the …

-specific labour imply a sufficient degree of real rigidity, and so can reproduce inflation dynamics well. However, they imply too … little real rigidity and, so, too volatile inflation, owing to strong responses of marginal wages and hours per employee … the responses of wages, inflation and employment. …

and sometimes the unconditional means of the nominal rate, inflation and the output gap are strongly affected by …

bank independence and measures of persistence, and then we compare them with inflation performance in OECD countries. Our … results show, as theory predicts, a robust negative relationship between the degree of independence and the level and variance … of inflation. …

Inflation-indexed bonds are fixed-income securities whose nominal cash flows are adjusted to an inflation index. In … countries where these securities exist, inflation expectations are sometimes estimated as the spread between the nominal yield … the same issuer. However, this indicator known as the break-even rate, may estimate inflation expectations with some …