) by adding frictions such as price indexation to past inflation, sticky wages, consumption habits and variable capital …

inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model which … resolves this apparent micro - macro conflict. Our model is consistent with post-war U.S. evidence on inflation inertia even …

I use a microfounded model of money to quantify the redistributive effects of expected inflation in a sample of OECD … considered inflation acts as a regressive tax. Second, the magnitude of such redistributive effects differs across countries and …

What are the implications of targeting different measures of inflation? We extend a basic theoretical framework of … optimal monetary policy under inflation targeting to include several components of CPI inflation ratio, and analyze the … implications of using different measures of inflation as target variable — core inflation, CPI excluding interest rates, and …

inflation - i.e. targeting a j-period average of one-period inflation rates - will cause inflation expectations to change in a … way that improves the short-run trade-off faced by the monetary policymaker. Average inflation targeting is thus an … from the standpoint of the true social objective (inflation targeting under commitment), than the discretionary pursuit of …

detailed surveys of household inflation expectations for the United States and Sweden, we find that the data are generally … unsupportive of the near-rationality hypothesis. However, we document that household inflation expectations tend to settle around … discrete and largely fixed “focal points,” suggesting that both U.S. and Swedish households gauge inflation prospects in rather …

from two perspectives. The first investigates the robustness of efficient inflation-forecast-based rules under transmission … for monetary policy is less clear. Typically, these more-robust policy rules have higher absolute levels of inflation … variability than less-robust rules. In other words, less-robust rules typically do a better job at controlling inflation …

analysis of interest rules, the inflation rate depends on the output gap, which is solely determined by its own lags and the …