In practice, central banks have been confronted with a trade-off between stabilising inflation and output when dealing … economy is hit by oil price shocks.The main result is that oil price shocks generate an endogenous trade-off between inflation … authority to stabilise partially the effects of oil shocks on inflation and some inflation is desirable. We also find, in …

In practice, central banks have been confronted with a trade-off between stabilising inflation and output when dealing … inflation and output stabilisation when oil has low substitutability in production. Therefore, it becomes optimal for the … monetary authority to stabilise partially the effects of oil shocks on inflation and some inflation is desirable. We also find …

expansionary due to both lower inflation (given the exchange rate appreciation) and weaker output growth, and macroprudential …, macroprudential policies are less effective but useful as a complement for the tightening of monetary policy. Higher inflation (due to …

inflation; and iii) the conventional wisdom approach of responding to global commodity price swings (as external supply shocks … when they are truly global demand shocks) results in an excessive procyclicality of global inflation, output and commodity …

In this paper we analyze the effects of informal labor markets on the dynamics of inflation and on the transmission of … "buffer" effect that diminishes the pressure of demand shocks on inflation. This finding is consistent with the empirical … impact on inflation. Furthermore, the model produces cyclical flows from informal to formal employment, consistent with the …