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 …

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. …

Inflation is a far from homogeneous phenomenon, but this fact is ignored in most work on consumer price inflation …, allowing sectoral sources of inflation to be identified. Aggregating the forecasts of the components with appropriate weights …

We build a 4-equation model of the inflation process in South Africa (which has recently adopted inflation targeting … inflation. The model is in the tradition of central bank models of the inflation process, but carefully tests for asymmetries …

This paper discusses the econometric model of inflation processes in the Republic of Belarus which makes it possible to …

correlation between inflation and output. Furthermore, this result is robust to parameter values and specification of the … inflation equation. …

Modern monetary policy analysis is built around the concept of an interest rate rule that responds to both inflation … suggest that targeting the true output gap can be well approximated by a rule that only reacts to inflation. …