interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response … to the level of the output gap was not significant. In our empirical analysis we use real-time data, as available to …

As inflation rates in the United States decline, analysts are asking if there are economic reasons to hold the rates at … levels above zero. Previous studies of whether inflation greases the wheels of the labor market ignore inflation's potential … allows the benefits of inflation (downward wage flexibility) to be separated from disruptive uncertainty about inflation rate …

interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response … to the level of the output gap was not significant. In our empirical analysis we use real-time data, as available to …

is derived from policy-makers' preferences about inflation outcomes, we first show that downside risks to price stability … future inflation can provide insurance against the materialisation of such upside risks. …

target inflation rates as low as 2 percent. However, the effects of the constraint are non-linear with respect to the … inflation target and produce a quantitatively significant deterioration of the performance of the economy with targets between 0 … and 1 percent. The variability of output increases significantly and that of inflation also rises somewhat. Also, we show …

We investigate co-movements and heterogeneity in inflation dynamics of different regions within and across euro area … countries using a novel disaggregate dataset to improve the understanding of inflation differentials in the European Monetary … Union. We employ a model where regional inflation dynamics are explained by common euro area and country specific factors as …

Using a set of regional inflation rates we examine the dynamics of inflation dispersion within the U.S.A., Japan and … across U.S. and Canadian regions. We find that inflation rate dispersion is significant throughout the sample period in all … reversion (?- convergence) in inflation rates in all considered samples. The evidence on ?-convergence is mixed, however …

inflation and its target, and the gap between output and its potential. Under the opportunistic approach to disinflation a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output … stabilization when inflation is close to its target, allowing supply shocks and unforeseen fluctuations in aggregate demand to move …

Using a unique data set of regional inflation rates we are examining the extent and dynamics of inflation dispersion in … mean reversion (?-convergence) in inflation rates. However, half-lives to convergence are considerable and seem to have … the further convergence has proceeded. An examination of the dynamics of overall inflation dispersion (?-convergence …