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 …

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 …

In this paper we investigate dynamics of global inflation and short-run inflation expectations. We estimate a global … inflationary pressure that could drive up inflation expectations: domestic aggregate demand and supply shocks as well as a global … increase in oil price inflation. Our results indicate that inflation expectations tend to increase as inflation accelerates …

We investigate the roles of a time-varying inflation target and monetary and fiscal policy stances on the dynamics of … inflation in a DSGE model. Under an active monetary and passive fiscal policy regime, inflation closely follows the path of the … inflation target and a stronger reaction of monetary policy to inflation decreases the response of inflation to non …

inflation. The estimation results show substantial time-variation in the coefficient associated with the volatility, high …

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 …

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 …