omission in the VARs of a variable capturing the high persistence of expected inflation under indeterminacy is found to account … bank response to inflation. These sub-samples correspond to the pre-Volcker period for the US and the pre-inflation … equilibria arise. In contrast, the DSGE model never generates on impact a positive inflation response to a policy shock. The …

the high persistence of expected inflation under indeterminacy is found to account for the price puzzle observed in actual … bank response to inflation. These subsamples correspond to the pre-Volcker period for the United States and the period … prior to the introduction of the inflation targeting framework for the United Kingdom. Using a micro-founded New …

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

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 …

weak central bank response to inflation generates sunspot fluctuations, the consequences of pooling observations from … simulations from a purely forward-looking model, this paper shows that indeterminacy can introduce a sizable persistence in the … estimated process of inflation. This persistence however is not an intrinsic feature of the economy; rather it is the result of …

inflation targeting strategy. Two measures of transparency are applied. The institutional measure reflects the extent to which a …

makers are allowed to weight differently positive and negative deviations of inflation and output from the target values … expansions of the same magnitude. This asymmetry is shown to induce an average inflation bias of 1.11% that appears to have … substantially contributed to the great inflation of the 1960s and 1970s. …