Regarding inflation as being a monetary phenomenon in the long-run is a widely-held view in modern macro economics. We … analyse this topic by means of a P-star model. Based on the quantity theory of money, this approach explains inflation via a … supposed equilibrium price level (P-star), which itself depends on potential output and money. We investigate country …

-varying inflation persistence as an important issue for monetary policy. We determine not only the location and significance of breaks … in persistence, but also the number of breaks. Only one significant break in U.S. inflation persistence (measured by the …

This paper studies the importance of money for inflation in the euro area. An inflation equation is derived from a … small model that combines the supply and demand for money with a Phillips curve and the assumption that inflation … expectations develop adaptively. The model's solution attributes an impact on inflation not to actual money growth but to its core …

In recent macroeconomic theory, relative price variability (RPV) generates the central distortions of inflation. This … paper provides first evidence on the empirical relation between inflation and RPV in the euro area focusing on threshold … effects of inflation. We find that expected inflation significantly increases RPV if inflation is either very low (below -1 …

This paper reviews theory and evidence of the welfare effects of inflation from a costbenefit perspective. Basic models … and selected empirical results are discussed. Historically, in assessing the welfare effects of inflation, the distortion … of money demand played a prominent role. More recently, interactions of inflation and taxation came into focus. Growth …

experts? inflation expectations, we find that the model adequately captures the dynamics of household inflation expectations …

This paper assesses the performance of monetary indicators in predicting euro area HICP inflation out-of-sample over …. The results suggest that monetary indicators are still useful indicators for inflation in the euro area, but that a … inflation. …

curves, we estimate monetary policy rules with common and idiosyncratic components of inflation and the output gap included …We examine the global dimension of inflation in 24 OECD countries between 1980 and 2007 in a traditional Phillips curve … framework. We decompose output gaps and changes in unit labor costs into common (or global) and idiosyncratic components using a …

Our paper studies the relationship between money growth and consumer price inflation in the euro area using wavelet … analysis. Wavelet analysis allows to account for variations in the money growth-inflation relationship both across the … frequency spectrum and across time. We find evidence of strong comovements between money growth and inflation at low frequencies …

We investigate output sensitivity of inflation in the euro area through a disaggregated analysis using price indices at … of the ICSP is significantly higher than that of headline inflation. The difference in output sensitivity is most … food items (processed and unprocessed), non-durable industrial goods and services related to recreation. Output sensitivity …