variable and the co-integrating vector. Results indicate that inflation in Malawi is a result of both real and monetary shocks … variables. A model of inflation is estimated as a co-integrating vector that spans nominal exchange rate and domestic output. In … the second stage, a model of inflation is estimated with first differences of the non-stationary variables, a level …

The paper offers a new explanation for the cause of the Great Inflation by constructing a model that explicitly … separates the roles of government and monetary policymakers. A mechanism that inflation can accelerate even if an inflation … target is low is uncovered. The model solves the puzzle of the observed high inflation target during the Great Inflation and …

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 …

reducing inflation from three-digit annual rates in the 1990s to single-digit territory in 2004. The paper also discusses the …

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. …