This paper measures the welfare gains of switching from inflation-targeting to price-level targeting under imperfect … higher welfare than inflation targeting. We revisit this issue by introducing imperfect credibility, which is modeled as …

inflation. However, such studies have for the most part focused on linear models, ignoring potential non-linearities between … interest rates and inflation. Using two different non-linear models, we find that the relationship between interest rate yield … spreads and inflation changes for policy-relevant horizons in the United States is most pronounced at negative long …

-zero trend inflation. We characterize the fiscal and monetary policies by a rule whereby a given fraction k of the government … measured by (1 - k), is positively related to trend inflation, and 2) when prices are sticky, k has significant effects on the …

Measures of core inflation enable a central bank to distinguish price movements that are transitory and generated by … core inflation measure called the “trimmed mean” that excludes components with exceptionally large price changes at the …

We propose alternative single-equation semi-structural models for forecasting inflation in Canada, whereby structural …

Inflation targeting (IT) had originally been introduced as a device to bring inflation down and stabilize it at low … levels. Given the current environment of persistently weak inflation in many advanced economies, IT central banks must now … bring inflation up to target. In this paper, the author tests to what extent inflation expectations are anchored in such …

The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage … integrate staggered price- and wage-setting into an endogenous growth framework. In this setting, growth and inflation are … linked via the incentive to innovate. For standard calibrations, the linkage is strong: as trend inflation shifts from –5 to …

This paper studies the formation of consumers’ inflation expectations using micro-level data from the Michigan Survey …. It shows that beyond the well-established socio-economic determinants of inflation expectations such as gender, income or … the average household in response to increasing media reporting about inflation. …

In this paper, the authors propose a measure of underlying inflation for Canada obtained from estimating a monthly … distort the signal in many other measures of underlying inflation, and appears to capture price movements that are indicative … measures of underlying inflation monitored by the Bank of Canada. …