The US and other advanced countries suffered bursts of severe inflation in 2021 and the first half of 2022, followed by … declines of inflation later in 2022, in some countries. In times of high volatility of price determinants--cost and … productivity--inflation can jump upward and fall downward at high speed, contrary to the uniformly sticky behavior associated with …

We show that, in a broad class of menu cost models, the dynamics of aggregate inflation in response to arbitrary shocks …

difference by showing that, although the pass-through of marginal cost into inflation is substantial, the elasticity of marginal … inflation …

explaining bouts of inflation. We begin by showing that a quasi-flat Phillips curve, which was popular prior to the pandemic …, still fits the post-2020 US data well and that changes in short term inflation expectations induced by supply shocks likely … played a major role in the recent inflation episode. We then document features of the joint dynamics of inflation and …

Inflation dynamics have been difficult to explain over the last decade. This paper explores if a more comprehensive … treatment of globalization can help. CPI inflation has become more synchronized around the world since the 2008 crisis, but core … and wage inflation have become less synchronized. Global factors (including commodity prices, world slack, exchange rates …

inflation behaves as if prices are nearly fully sticky (flexible). Using (conventional) measures of inflation that understate …

. The model delivers a static wage Phillips curve linking current wage inflation to current unemployment. For standard … stickiness, which features a forward-looking wage Phillips curve, linking current wage inflation to future expected wage … inflation and current unemployment. This result puts in perspective the role played by the forward-looking component of the new …

product-market and labor-market shocks on prices and nominal wages and to quantify the sources of U.S. pandemic-era inflation …, most of the inflation surge that began in 2021 was the result of shocks to prices given wages. These shocks included sharp …We answer the question posed by the title by specifying and estimating a simple dynamic model of prices, wages, and …

We explore a hypothesis about the take-off in inflation that occurred in the early 1970s. According to the expectations … trap hypothesis, the Fed was pushed into producing the high inflation out of a fear of violating the public's inflation … expectations. We compare this hypothesis with the Phillips curve hypothesis, according to which the Fed produced the high inflation …