A puzzle from the Great Recession is an apparent mismatch between a fall in the persistence of European inflation rates …, and the increased variability of expert forecasts of inflation. We explain this puzzle and show how country specific … beliefs about inflation are still quite close to the European Central Bank target of 2% (what we call official target …

This article examines the performance of inflation targeters during the 2007-2012 downturn compared to those without … successful policy results in higher inflation and output growth, lower unemployment, and a better fiscal position. The analysis … is conducted separately for developed and emerging countries. Inflation targeting tends to insulate developed countries …

We examine the effect of inflation variability and economic growth using annual historical data on both developing and … inflation variability by the five-year coefficient of variation of inflation, we obtain the following results: (1) For … developing countries, there is significant evidence to suggest that when the rate of inflation exceeds 10 percent inflation …

This paper extends the New Keynesian Phillips curve model to include inflation volatility and tests the determinants of … such volatility for India. It provides results on the determinants of inflation volatility and expected inflation … volatility for OLS and ARDL (1,1) models and for change in inflation volatility and change in expected inflation volatility using …

This paper amends the New Keynesian Phillips curve model to include inflation volatility. It provides results on the … determinants of inflation volatility and expected inflation volatility for OLS and ARDL(1,1) models and for change in inflation … volatility and change in expected inflation volatility using ECM models. Output gap affects change in expected inflation …

inflation in developing countries and further explores this link in the absence of public sector wage expenditure. Sri Lanka, a … developing country with a persistent fiscal deficit, a large public sector and increasing inflation, has been chosen for the … narrow money is associated with about an 11 percentage point increase in inflation. This link becomes weaker in the absence …