inflation expectations. We develop this measure using assumptions common in economic analysis of open economies. Using quarterly …

each country faces a short run tradeoff between output and inflation. The model is sufficiently tractable to solve … response to domestic inflation, under cooperation they should respond to foreign inflation as well. In either scenario …

This paper first outlines the key stylized facts about changes in inflation dynamics in recent years: 1) inflation … persistence has declined, 2) the Phillips curve has flattened, and 3) inflation has become less responsive to other shocks. These … changes in inflation dynamics are interpreted as resulting from an anchoring of inflation expectations as a result of better …

This paper examines the shift in the relation between the inflation rate and the rate of growth of real output which … possible lines of explanation: a) the new classical view of the output-inflation tradeoff, initially specified by Lucas;b) the … effect of supply-side shocks, such as energy prices; c) the effect of inflation variability on the natural rate of real …

its money demand properties and determine the optimal long-run inflation rate that trades off the New Keynesian distortion …

pattern of correlations between exchange-rate changes and inflation that is more realistic than provided by a more standard …

undifferentiated final product. If the nominal prices of the differentiated goods are relatively sticky, then unexpected inflation … unexpected inflation abroad. The various versions of the model imply that the relative prices of less competitive goods move …