aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …

rational private sector expectations about housing prices and inflation, optimal monetary policy can be characterized by a … standard 'target criterion' that refers to inflation and the output gap, without making reference to housing prices. When the … increases (decreases), policy should adopt a stance that is projected to undershoot (overshoot) its normal targets for inflation …

How should central banks optimally aggregate sectoral inflation rates in the presence of imperfect labor mobility … mobility, ceteris paribus, increases the optimal weight on inflation in a sector that would otherwise receive a lower weight … computing sectoral inflation weights based solely on sector size, and unveil a significant role for the degree of sectoral labor …

provide a very general log-linearization method, from which we can easily obtain various special cases, as trend inflation or …

In this paper, we revisit the fiscal theory of the price level (FTPL) within the New Keynesian (NK) model. We show in … inflation dynamics. Our results illustrate the role of the maturity of existing debt in the wake of skyrocketing debt … fiscal packages (CARES) and predict a surge in inflation if the deficits are not sufficiently backed by future surpluses …

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 …

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 …