. The model identifies a measure of “pure” inflation: the common component in goods’ inflation rates that has an … equiproportional effect on all prices and is uncorrelated with relative price changes at all dates. The estimates of pure inflation and … pure inflation accounts for 15-20% of the variability in overall inflation, so that most changes in inflation are …

Inflation is a far from homogeneous phenomenon, a fact often neglected in modelling consumer price inflation. This … study, the first of its kind for an emerging market country, investigates gains to inflation forecast accuracy by …

This paper introduces a new indicator of core inflation for New Zealand, estimated using a dynamic factor model and … core indicator with a wide range of other ‘core inflation’ measures estimated from disaggregate consumer prices, such as … the weighted median and the trimmed mean. The medium term inflation target of Reserve Bank of New Zealand is used as a …

In this paper, we formulate a statistical model of inflation that combines data on survey expectations and the … inflation target set by central banks.. Our model produces inflation forecasts that are aligned with survey expectations … the inflation target set by the monetary authority to examine the effectiveness of monetary policy in forming 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 …

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 …

Recent cross-country studies on the globalization and output-inflation tradeoff correlation find openness has no … openness on the output-inflation trade off differ in sign and size across countries. In contrast to previous cross …-country studies, we find globalization has significantly changed some major industrialized countries’ output inflation tradeoff. This …

We study optimal price setting by a monopolist in an infinite horizon model with stochastic costs, moderate inflation … steady state short-run Phillips curve implies that the output loss associated with a small negative inflation surprise is … about twice as large as the output gain associated with a small positive inflation surprise. …

-term inflation is derived from the dynamic stochastic general equilibrium (DSGE) model with state-dependent pricing developed by …-type price-setting as a special case. It describes current inflation as a function of lagged inflation, expected future inflation … find that current inflation depends positively on its own lagged values giving rise to intrinsic persistence as a source of …