infinite horizons, transaction costs technologies and flexible prices.  Second-best optimality calls for a positive inflation …

Inflation is a far from homogeneous phenomenon, a fact often neglected in modeling consumer price inflation.  Using a … sectoral sources of inflation, useful to monetary policy.  Data for 1979 to 2003 are used for model selection, and pseudo out …

Inflation targeting central banks will be hampered without good models to assist them to be forward-looking.  Many … current inflation models fail to forecast turning points adequately, because they miss key underlying long-run influences ….  The world is on the cusp of a dramatic turning point in inflation.  If inflation falls rapidly, such models can …

Inflation is a far from homogeneous phenomenon, but this fact is ignored in most work on consumer price inflation …, allowing sectoral sources of inflation to be identified. Aggregating the forecasts of the components with appropriate weights …

In countries with credible inflation targeting, it seems plausible to suggest that instead of forming a rational … expectation, some firms (inflation-targeters) might simply expect future inflation to always equal its target. This paper analyses … shocks have any persistence, inflation is more stable, loss is reduced, and the optimal policy frontier is improved as the …

despite increasing inflation temporarily, gradual demand expansions are usually desirable when the natural rate is low. Our … model also offers a new explanation for inflation persistence. …

We build a 4-equation model of the inflation process in South Africa (which has recently adopted inflation targeting … inflation. The model is in the tradition of central bank models of the inflation process, but carefully tests for asymmetries …

during the `Great Inflation` period. …

Empirical models of inflation often incorporate equilibrium correction effects based upon levels of prices and input … permanent shifts in the markup factor through estimating an inflation equation that includes a time-varying intercept. The model …