have used for illustrative purposes, we pinned down the long-run inflation expectations and domestic and foreign potential …

persistence, is instrumental in generating inflation persistence. However, the combination of full forward-looking behaviour and … inflation, the output gap, the nominal interest rate, as well as the real exchange rate. …

This paper examines euro area inflation dynamics by estimating open economy New Keynesian Phillips curves based on the … survey data and OECD inflation forecasts are used to proxy inflation expectations. The results suggest that, compared with a … closed economy New Keynesian Phillips curve, euro area inflation dynamics are better captured by the open economy …

This paper analyzes euro area and U.S. inflation dynamics since the beginning of the 1990s by estimating New Keynesian … hybrid Phillips curves with time-varying parameters. We measure inflation expectations by subjective forecasts from Consensus … results indicate that in both economic areas the inflation dynamics have steadily become more forward-looking over time. We …

This paper examines recent changes in the cyclicality of euro area inflation. We estimate time-varying parameters for … become steeper since 2012. Thus, the current low level of inflation and persistently negative output gap increase the risk … that euro area inflation will stay below the monetary policy target for an extended period. …

This paper analyses the role of inflation expectations in the euro area. On one hand, the question is how inflation … expectations affect both inflation and output, and, on the other hand, how inflation expectations reflect developments in these … variables. The analyses make use of a simple VAR model of inflation, inflation expectations and the output gap that allows for …

policy shock, we distinguish between a standard policy rate shifter and a shock to trend inflation ie the time …-varying inflation target set by the Fed. While offering some statistical support to the cost channel, our estimated model clearly … implies a negative inflation reaction to a tightening of monetary policy. We offer a discussion of the possible sources of …