restrictions which are not rejected by the data - the cost channel helps to generate an initial rise of inflation after a monetary …

milder macroeconomic responses to a monetary policy shock estimated with our VAR in presence of high uncertainty. A version …

sluggish. Job creation and job destruction are negatively correlated. And the volatility of unemployment is much larger than in … the standard search and matching model …

found to help rationalizing the hump-shaped response of inflation, without resorting to the counterfactual assumption of …

-type staggered price setting approach, which means that the adjustment of the aggregate loan rate to a monetary policy shock is … inflation is driven by real unit labor costs rather than the loan rate. Our main conclusion is that the strength of the cost …

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 …

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 … response to an interest shock is found to be too large and no longer hump-shaped in this case. In addition we find that the …

inflation targeter early in this period but began to pay less attention to inflation after 2009. Loss of the strong nominal …

individuals use simple rules of thumb (heuristics) to forecast the future inflation and output gap. We compare this model with the …