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. …

in principle less restrictive approach is applied to operationalising expectations. Direct measures of inflation … expectations, ie OECD forecasts, are used as empirical proxies of economic agents’ inflation expectations. The main interest is in … the euro area as a whole, although potential heterogeneity of inflation dynamics is also examined across eleven EMU …

In this paper we establish a link between the volatility of oil price shocks and a positive expected value of inflation … in equilibrium (inflation premium). In doing so, we implement the perturbation method to solve up to second order a … relaxes certainty equivalence providing a link between the volatility of shocks and inflation premium. First, we obtain …

and inflation indexation, that are typically needed in monetary models with rational expectations to match the persistence …

During the decade of the 1970’s the US economy unexpectedly suffered from “stagflation” namely, high unemployment …, slowed economic growth and high rates of inflation. During the 1980’s the major macroeconomic problem became high interest … of unemployment theories in an effort to account for these anomalous observed economic events. Our paper puts forth an …

that explains various types of inflation, e.g. hyperinflation, chronic inflation, disinflation and deflation, by this …The paper explores a fundamental mechanism of inflation by explicitly including a governmentfs optimization problem … into a general equilibrium model assuming a Leviathan government. The result is clear- cut and beautiful: inflation is …

. This was a period of very low inflation. The rate of growth in the aggregate price level was occasionally very close to … inflation. The declining prices cannot, however, be explained by lack of demand or any generalized deflationary tendencies … develops a new method for looking at the composition of inflation and illustrating how relative price dynamics interact with …

should be common or that a policy close to the Friedman rule and thus some deflation is optimal. Finally, a formal ``baby …