By placing store-level price data into bivariate Structural VAR models of inflation and relative price asymmetry, this … relative price asymmetry is positive, idiosyncratic shocks lead to a substantial build-up in inflation only after two to five … study evaluates the quantitative importance of idiosyncratic pricing shocks in short-run aggregate price change dynamics …

competitive inflation rate. For policy makers an interesting feature of the perfectly competitive price index is that the evidence …This paper analyzes price formation and dynamics according to the industry structure. It divides manufacturing … industries predominate. Then this classification is used to build consumer price sub indexes for the goods of both sectors. These …

This paper develops a model which can explain the hump-shaped impulse response of inflation to a monetary shock. A …). Nevertheless, we can show that inflation is hump-shaped under a reasonable range of parameters. It will be also shown that, in … order for inflation to be hump-shaped, sticky wages and variable capital utilization are important as well as dynamic …

Forecasting inflation remains an intriguing research topic among academics and practitioners alike. Recent studies by … or other macroeconomic and financial variables for the purpose of forecasting inflation. In particular, it is found that … Bayesian Averaging of Classical Estimates (BACE) for forecasting inflation. Based upon the idea of model averaging, the BACE …

One of the key inputs for inflation targeting regime is the right identification of inflationary or disinflationary … gap an inflation rate (Phillips Curve) and structural restrictions over output stochastic dynamics. The estimation is … problems and exhibits more relation with the Peruvian inflation process than other estimates, calculated with the Hodrick …

, while those using GMM have reported the inflation dynamics to be predominantly forward-looking. This paper provides a …

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 …

The aim of the present paper is to analyze the pass-through from exchange rate to inflation in Brazil from 1980 to 2002 … a price-taker; (ii) costs are a function of the exchange rate; (iii) the degree of openness is included in the demand … can observe a reduction in the pass-through to consumer price indices (IPCA and IGP-DI) after the implementation of the …

disproportionately large weight on commonly shared information. For reasonable degrees of strategic complementarity, the aggregate price …