alternative rules of thumb. In the model, firms must set their prices in face of aggregate demand shocks. Their payoff depends on …

bargaining give the same outcomes as uncoordinated bargaining under inflation targeting. Under monetary union wage leadership for …

-traded sector, than does a price target. An exchange rate target also involves higher prices on non-traded goods relative to traded …

mildly positive. It significantly falls only if narrowly defined as the ratio between new house and nondurables prices. These …

economic convergence may push up inflation rates in transition economies. Cyclical effects and regulated prices are found to be … important drivers of inflation rates in an enlarged Europe. House prices matter to some extent in the euro area, whereas the … root of different inflation rates in Europe including the EU-27. Among others, we study the structural and cyclical factors …

This paper employs a stylized New Keynesian DSGE model for a monetary union to analyze whether cyclical inflation … the fraction of borrowers and to a lesser extent the loan-to-value ratio - generate inflation differentials that are … characteristics of financial markets should be seen as a possible alternative explanation for the observable inflation dispersion in …

In a standard New Keynesian model, a myopic central bank concerned with stabilizing inflation and changes in the output … stabilizing output gap changes, the central bank imparts inertia into output and inflation that is absent under pure discretion … social outcomes if it focuses on inflation and changes in the output gap than are achieved under inflation targeting. …

Keynesian model we show that, if households have hyperbolic discounting, small positive rates of inflation can be optimal. In … our baseline calibration, the optimal rate of inflation is 2.1% and remains positive across a wide range of calibrations. …