This paper estimates a New Keynesian model with trend inflation and contrasts Taylor rules featuring fixed versus time …-varying inflation target while allowing for passive monetary policy. The estimation is conducted over the Great Inflation and the Great … Moderation periods. Time-varying inflation target empirically fits better and active monetary policy prevails in both periods …

effects of uncertainty shocks on inflation. We find the response of inflation to be statistically insignificant until mid …

Low inflation was once a welcome to both policy makers and the public. However, Japan’s experience during the 1990’s … unusually prolonged. Too low inflation which annoys central banks today is translated into the “Phillips curve puzzle”. In the …, inflation stayed low. In this paper, we consider a minimal model of dual labor market to jointly investigate how blue the …

There is no consensus over the importance of “global forces” on inflation. This study explores the role of structural … breaks in the inflation process, and their timing, whether it is common across countries, and the extent to which ‘global … forces' are relevant. Three conclusions stand out. Global inflation impacts inflation in both AE and EME, but the impact is …

We introduce inventories into an otherwise standard New Keynesian model and study the implications for inflation … equivalent to the standard model with respect to the behavior of inflation when the model's cross-equation restrictions are … explaining inflation dynamics within our New Keynesian Phillips curve framework …

marginal value of future demand as additional driving forces for inflation dynamics. We construct the driving process in the …

We study the extent of global inflation synchronization using a dynamic factor model in a large set of countries over a … emerging market and developing economies) and to analyze commonalities in inflation synchronization across a wide range of … inflation measures. We report three major results. First, inflation movements have become increasingly synchronized …

We analyze the evolution and drivers of inflation during the pandemic and the likely trajectory of inflation in the … near-term using an event study of inflation around global recessions and a factor-augmented vector auto-regression (FAVAR …) model. We report three main results. First, the decline in global inflation during the 2020 global recession was the most …