We develop an asset-pricing model with endogenous corporate policies that explains how inflation jointly impacts real … asset prices and corporate default risk. Our model includes two empirically grounded nominal frictions: fixed nominal … when inflation falls. An increase in inflation has opposite effects, but with smaller magnitudes. In the cross section, the …

uncertainty about inflation as a non-targeted moment …How does competition affect information acquisition of firms and thus the response of inflation and output to monetary …

We study how domestic and global output gaps affect CPI inflation. We use a New-Keynesian Phillips curve framework …1-2017Q4 period. We find broadly that both global and domestic output gaps are significant drivers of inflation both in … output gaps on inflation …

rate policy helps to reconcile the inflation and output persistence with empirical observations for the US economy. We show … findings for the inflation inertia in a model with capital adjustment costs and variable capacity utilization, the output …

We derive closed-form solutions and sufficient statistics for inflation and GDP dynamics in multi-sector New Keynesian … of inflation and GDP responses to monetary and sectoral shocks and (2) increase the pass-through of sectoral shocks to … aggregate inflation. Quantitatively, we confirm the significant role of production networks in shock propagation, emphasizing …