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. …

Here I describe the dynamical model of a “pure” inflationary process and give a model-based definition of the inflation. …

consumers perceive the contrary. The data indicate that consumers based their perceptions about inflation on goods that are …

directly contradicted by important insights from microeconomic theory and social psychology. At least two economic literatures …