We study a model with repeated moral hazard where financial contracts are not fully indexed to inflation because … economies with higher price-level uncertainty are less vulnerable to a price shock of a given magnitude, that is, aggregate …

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 …

inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively … shock and the supply side effects of monetary policy. Second, the existence of real money balance effects causes higher …

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. …

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

The author constructs a measure of core inflation using a structural vector autoregression containing oil-price growth …, output growth, and inflation. This "macro-founded" measure of inflation forecasts total inflation at least as well as other …

activity or inflation. This is of particular interest in the context of an inflation-targeting regime, where the monetary … policy stance is set according to inflation forecasts. While most empirical studies on causality have examined this issue … criteria. The causality pattern inferred by the authors' procedure is consistent with the Phillips curve (for the inflation …

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 and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively … shock and the supply side effects of monetary policy. Second, the existence of real money balance effects causes higher …