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 …

Political Science on June 4th. It starts by asking what factors have been behind the remarkable retreat of inflation that has …

During the 1970s and early 1980s, Spain suffered high rates of inflation but inflation declined and by 1997 inflation … had fallen to approximately 2 percent. To fight inflation, Spain implemented austere monetary programs, joined the EMS in … 1989, enacted central bank autonomy in 1994, and introduced inflation targets in January 1995. Certainly, these and other …

and its implications for US output, hours and inflation. Second we evaluate the extent to which that responses can be … accounted for by a simple monetary policy rule in the context of a standard business cycle model with sticky prices. …

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 …

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

The New Keynesian Phillips Curve (NKPC) is now the dominant model of inflation dynamics. In recent years, a large body …

constant inflation. This change has been more pronounced than elsewhere. We argue that this stems from the immigration boom in … 1995 would have led to an annual increase in inflation of 2.5 percentage points if it had not been largely offset by …

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. …