We investigate co-movements in inflation dynamics within and across euro area regions and find it important for … monetary policy to monitor regional inflation dynamics to enhance the understanding of aggregate inflation. We employ a model … where regional inflation dynamics are explained by common euro area and country specific factors and an idiosyncratic …

-term inflation is derived from the dynamic stochastic general equilibrium (DSGE) model with state-dependent pricing originally … on Calvo-type price-setting as a special case. It describes current inflation as a function of lagged inflation, expected … future inflation, and current and expected future real marginal costs. The paper demonstrates that inflation dynamics …

This paper considers the evidence of “near-rationality†in household inflation expectations, as described by Akerlof …, Dickens, and Perry (2000), hereafter ADP. According to ADP, the economic incentive to anticipate inflation varies from agent … to agent, and as inflation falls, some agents stop trying to accurately predict inflation (“hyper-rationalâ€) and …

transparent and credible inflation objective …

series models of U.S. unemployment and inflation. Because the null hypothesis that the coefficients are in fact constant lies …

. Unanticipated inflation redistributes income and wealth. In order to model the wealth distribution, we study a 60-period OLG model …

-based inflation expectation series from the Philadelphia Fed. Our test rejects the reported Gali-Gertler estimates, conditional on …-point the extent of the importance of marginal costs for the inflation process. …