The Paper presents a model in which the exogenous money supply causes changes in the inflation rate and the output … growth rate. While inflation and growth rate changes occur simultaneously, the inflation acts as a tax on the return to human … the income velocity of money that can break the otherwise stable relation between money, inflation, and output growth …

components improves forecast accuracy of the aggregate forecast of euro area and US inflation in some situations, but not in …

generalize Campbell's VAR implementation of Campbell and Shiller's present value decomposition to allow for parameter instability …

We study the inflation uncertainty reported by individual forecasters in the Survey of Professional Forecasters 1969 … asset pricing. We find that inflation uncertainty fluctuates over time in a way that traditional time series models fail to … capture. Instead, uncertainty is highly correlated with the level of inflation, in particular with recent positive inflation …

heterogeneity in wage rigidity, such as the persistence in price and the wage inflation, which a standard New Keynesian model with …In this paper we estimate a New-Keynesian DSGE model with heterogeneity in price and wage setting behavior. In a recent … study, Coibion and Gorodnichenko (2011) develop a DSGE model, in which firms follow four different types of price setting …

The first part of the paper analyzes the inflationary risks associated with price liberalization, the welfare costs of … inflation and the difficulties of East European central banks in pursuing non-inflationary policies. The main obstacles are the …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation …

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 …

While overall inflation has fallen dramatically in countries like Italy and Spain, inflation in the home good sector … remains stubbornly higher than inflation in the traded good sector. If nominal exchange rates are fixed, these real … appreciations imply an inflation differential with countries like Germany. We first show that the real appreciations can be …