This paper estimates the NAIRU (standing for the Non-Accelerating Inflation Rate of Unemployment) as a parameter that … varies over time. The NAIRU is the unemployment rate that is consistent with a constant rate of inflation. Its value is … determined in an econometric model in which the inflation rate depends on its own past values (‘inertia’), demand shocks proxied …

model, covering a panel of EU countries, and derives the implied long-run inflation-unemployment tradeoff. Our results …

We develop and estimate a structural model of inflation that allows for a fraction of firms that use a backward looking … measures of marginal cost as the relevant determinant of inflation, as the theory suggests, instead of an ad-hoc output gap …. Real marginal costs are a significant and quantitatively important determinant of inflation. Backward looking price setting …

inflation and a permanent reduction in the level of unemployment. In short, we derive a microfounded long-run downward …

shifts in the parameters of wage equations when the process generating price inflation changes. The two major shifts that we …

examining the relationship between inflation and unemployment, which sheds light on these developments. The theoretical section … similar inflation behaviour, in that inflation depends more closely on the capacity utilization rate than on the unemployment … high unemployment does not put downward pressure on the inflation rate. During the 1970s and 1980s in Germany, there …

inflation and the difficulties of East European central banks in pursuing non-inflationary policies. The main obstacles are the …

We study the effects of Central Bank transparency on inflation and the output gap. We thus first identify a small … analytical model, which concludes that transparency affects the variability of inflation and output and not their average levels … explain however, about 50% of the variability in inflation. The relation between transparency and output volatility is less …

extent to which it is similar to inflation targeting as practiced by an increasing number of central banks. I examine the …

and its implications for US output, hours and inflation. Second we evaluate the extent to which those responses can be … the Fed’s policy tended to over stabilize output at the cost of generating excessive inflation volatility. Our evidence …