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 …

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 …

Inflation can “grease†the wheels of the labor market by relaxing downward wage rigidity but it can also increase … uncertainty and have a negative “sand†effect. This paper studies the grease effect of inflation by looking at whether the … interaction between inflation and labor market regulations affects how employment responds to changes in output. The results show …

Extending recent theoretical contributions on sources of inflation inertia, we argue that monetary uncertainty accounts …