This paper analyses the role of inflation expectations in the euro area. On one hand, the question is how inflation … expectations affect both inflation and output, and, on the other hand, how inflation expectations reflect developments in these … variables. The analyses make use of a simple VAR model of inflation, inflation expectations and the output gap that allows for …

This paper shows the way how persistent world inflation shocks hitting a small open economy can re-weight the … inflation. We derive a state-dependent Phillips curve based on translog preferences that make the elasticity of substitution of … disinflation on domestic inflation, as experienced in small open economies such as New Zealand, Chile and Peru. …

This paper examines the long-run effects of supply shocks (such as oil shocks) on inflation in the United States. The … persistence of supply shocks in U.S. inflation fell considerably during the period of Volcker’s disinflation (1979-1982). My … the behavior of inflation expectations - agents expected shocks to persist in the pre-Volcker period, but not in the post …

production in Lithuania, and many farm households have accessed additional sources of income in the rural economy. In an analysis …

The monetary system in Estonia is based on the currency board arrangement with German Mark. The strong commitments and … rule-based features of currency board imply that there is no active monetary policy in Estonia – all necessarily monetary …

Estonia is one of the most rapidly developing information societies in Central and Eastern Europe. Still, 61% of the … PRAXIS Center for Policy Studies from January to July 2002. The research was commissioned and financed by the Open Estonia … Foundation, the Look@World Foundation and the State Chancellery of the Republic of Estonia. It was co-financed by the …

This paper analyses the long-run effects of Estonia’s 2000 Income Tax Act with a dynamic general equilibrium model …

the view that efficiency considerations drive ownership changes (while earlier analysis for Estonia and for many other …