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 …

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 …

sub indexes’ inflation dynamics indicate that the exchange rate pass-through in the perfectly competitive sector is … sector. Also, that inflation inertia is lower in the former than in the latter; adding up in more volatility of the perfectly … competitive inflation rate. For policy makers an interesting feature of the perfectly competitive price index is that the evidence …

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 …

evaluate the impact of monetary policy on New Zealand business cycles and inflation variability and the output/inflation … policy has generally been counter-cyclical, thereby reducing business cycles and inflation variability. Exceptions are in … 1994 and 1995 when monetary policy accentuated the business cycle upswing and in 1998 when monetary policy accentuated the …

New Keynesian Phillips curve (NKPC). This model posits the dynamics of inflation as being forward-looking and related to …

equilibrium relationship between inflation and unemployment. Institutions interact with shocks which gives rise to substantially …

This paper presents some new estimates for the relationship between inflation and unemployment in Brazil based on a new … important factor in explaining the high persistence (inertia) of Brazilian inflation; iii) inflation does have an autonomous … inertial component, without linkage to shocks in individual markets; iv) a non-linear relationship between inflation and …

first modeling long memory in inflation as a result of the aggregation of individual inflation expectations and then showing … how the adoption of inflation targeting decreases the memory length in seven countries due to its moderating effect on … individual inflation expectatio …