shocks on wages and inflation but heighten the impact of technology shocks. Informality also increases the sacrifice ratio of … inflation volatility for some type of shocks but makes monetary policy less effective …

The relationship central to most inflation models, between slack and inflation, seems to have weakened. Do we need a …-cycle decomposition - to show that inflation models should more explicitly and comprehensively control for changes in the global economy … rates, and producer price competition can all significantly affect inflation, even after controlling for the standard …

This paper revisits the equilibrium and welfare effects of long-run inflation in the presence of distortionary taxes … and financial constraints. Expected inflation interacts with corporate taxation through the deductibility of i) capital … expenditures at historical value and ii) interest payments on debt. Through the first channel, inflation increases firms' taxable …

facts: (i) the long-run link between money growth and inflation and (ii) the link between credit growth and financial crises …. The analysis reveals that the former has weakened over time, while the latter has become stronger. Moreover, the money-inflation … two monetary facts. The money-inflation link is weaker in regimes characterised by low inflation and highly liberalised …

inflation. We exploit cross-country variation in a long panel to identify age structure effects in inflation, controlling for … increases. This relationship accounts for the bulk of trend inflation, for instance, about 7 percentage points of US … disinflation since the 1980s. It predicts rising inflation over the coming decades …

-term inflation target to help anchor expectations. This paper aims to document how much the release of the forecasts of one major … central bank, the Bank of Japan (BOJ), has influenced private sector expectations of inflation, and whether the degree of … influence depends to any degree on the adoption of an inflation target (IT). Consistent with earlier studies, we find the …

We provide new insights on the formation of inflation expectations - in particular at a time of great financial and … answered a weekly questionnaire about their short-, medium- and long-term inflation expectations. Participants received common … information sets with data relevant to euro area inflation. Our analysis of survey responses reveals several interesting results …

The remarkable stability of low domestic inflation in many countries requires explanation. In this paper, a number of … continuing low inflation, but also its coexistence with rapid growth and low real interest rates. Unfortunately, the analysis … also leads to the conclusion that rising inflation, unwinding financial imbalances, or both, could easily follow the …

There has been mounting evidence that the inflation process has been changing. Inflation is now much lower and much … more effective. There is no doubt in our mind that this explanation goes a long way towards explaining the better inflation …. We argue that prevailing models of inflation are too country-centric, in the sense that they fail to take sufficient …

Iceland was a high inflation country from the second half of the seventies and until the middle of the eighties. During … the middle of the nineties inflation in Iceland, at less than 2% p.a., was among the lowest in the OECD. In this paper we … analyse the roots of high inflation in Iceland and the subsequent disinflation episode. We find that high inflation in Iceland …