inflation. Hence, the initial response of inflation to monetary shocks is not sufficient to discriminate across models and for …

impact inflation, little crowding out of private expenditure exists, and the multiplier tends to be larger compared to a one …

different predictions for the optimal inflation rate than their popular homogenous-firm counterparts: (1) the optimal steady …-state inflation rate generically differs from zero and (2) inflation optimally responds to productivity disturbances. We show this by … estimate the historically optimal inflation path for the U.S. economy. In the year 1977, the optimal inflation rate stood at 1 …

is shown that the firm's optimal adjustment strategy may involve stockouts. At low inflation rates, output is inversely … related to the inflation rate, and the length of time demand is satisfied increases with the demand elasticity but decreases …

We estimate a multi-country multi-sector New Keynesian model to quantify the drivers of domestic inflation during 2020 …–2023 in several countries, including the United States. The model matches observed inflation together with sector-level prices … and wages. We further measure the relative importance of different types of shocks on inflation across countries over time …

The resurgence of inflation since the late 2021 is now accompanied by a reversal of prospects of growth, reviving fears … prominent role is played by the fall of households' purchasing power, and hence consumption, owing to the inflation shock visà … inflation surprises, independent of restrictive monetary policy, is not present in the standard New Keynesian models for …

This paper estimates a time-varying AR-GARCH model of inflation producing measures of inflation uncertainty for the … policy regime change associated with the start of EMU in 1999. The main findings are as follows. Steady-state inflation and … inflation uncertainty have declined steadily since the inception of EMU, whilst short-run uncertainty has increased, mainly …