Showing 1 - 10 of 873
This paper provides an explanation for the run-up of U.S. inflation in the 1960s and 1970s and the sharp disinflation … by low inflation. However, prolonged episodes of high inflation ending with rapid disinflations can occur when … policymakers underestimate both the natural rate of unemployment and the persistence of inflation in the Phillips curve. I estimate …
Persistent link: https://www.econbiz.de/10012467538
inflation and activity. If policy makers are guided by the welfare criterion of the representative household, globalization … forces also lead monetary policy to be more aggressive with regard to inflation fluctuations but, at the same time, more …
Persistent link: https://www.econbiz.de/10012465371
This paper examines what strategies policymakers have used to both reduce and control inflation. It first outlines why … a consensus has emerged that inflation needs to be controlled. Then it examines four basic strategies: exchange rate … pegging, monetary targeting, inflation targeting, and the just do it' strategy of preemptive monetary policy with no explicit …
Persistent link: https://www.econbiz.de/10012472421
A parsimonious model of shifting policy regimes can simultaneously capture expected and actual US inflation during 1969 …. Private sector learning about policymaker type leads to a reputation state variable. We use model inflation forecasting rules … to extract state variables from SPF inflation forecasts. US inflation is tracked by optimal policy without commitment …
Persistent link: https://www.econbiz.de/10013477255
Does a successful disinflation contribute to the anchoring of inflation expectations? We provide novel survey evidence … on the dynamics of euro area firms' inflation expectations during the disinflation episode since 2022. We show that firms …' short term inflation expectations declined steadily towards the inflation target as the disinflation progressed. However, we …
Persistent link: https://www.econbiz.de/10015326434
shocks have their maximum impact on inflation with a substantial delay. Third, the change in inflation is positively …
Persistent link: https://www.econbiz.de/10012470434
unstable processes for output and inflation. That results holds in a" theoretical model that includes backward-looking IS an …
Persistent link: https://www.econbiz.de/10012472522
monetary policy used to reduce inflation. The evidence comes from a cross-country comparison: countries with larger decreases … in inflation and longer disinflationary periods have larger rises in the NAIRU. Imperfections in the labor market have …
Persistent link: https://www.econbiz.de/10012473339
the fall in trend inflation. I develop a method for estimating the sacrifice ratio in individual disinflation episodes …, and apply it to 65 episodes in moderate-inflation OECD countries. In this sample. the sacrifice ratio is decreasing in the … inflation are unclear …
Persistent link: https://www.econbiz.de/10012474654
The paper discusses the choice between inflation targeting and monetary targeting as a strategy for the Eurosystem, the … the Eurosystem. The choice between inflation targeting and monetary targeting is, in effect, a choice between high and low … transparency. Inflation targeting and monetary targeting, in practice, imply similar policy decisions, but monetary targeting …
Persistent link: https://www.econbiz.de/10012471610