interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

assumptions on the functional correspondence between price inflation, inflation expectations and marginal costs. Expectations are … not assumed to be an unbiased predictor of actual inflation and instead derived from the European Commission’s Consumer … Survey data. The results suggest that expectations drive inflation with a lag of about 6 months, which casts further doubt on …

monetary targeted variable to have an impact on inflation. We apply a rather general framework to the Romanian experience with …

We study the low frequency comovements in unemployment, inflation and the federal funds rate in the U.S. From 1970 … buildup of inflation in the 1970's is that the Fed reacted to an increase in the natural rate of unemployment by conducting an … fed funds rate and inflation. We argue instead that the source of the inflation buildup in the 1970's was a downward drift …

which induce smooth inflation also dampen the adjustment of wages in response to shocks. In the search and matching … Phillips curve is that inflation is not only driven by an output gap but also by an employment gap – a feature usually …

wage and price dynamics. Recent empirical implementations stress the idea that these models link inflation to the behavior … declining inflation and labor shares in euro area. In this paper, we show that with realistic parameters, the canonical Calvo …

predictive power of the output gap for inflation in the euro area. We find evidence of changes in trend growth around the … estimates in real time. Our measures help forecasting inflation over most of our evaluation sample (2001-2010) but fail …

maker: It produces more accurate forecasts of inflation and more precise estimates of the NAIRU. JEL Classification: C22, E …