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 …

We analyze the impact of price stability-oriented monetary strategies (inflation targeting — IT — and constraining … exchange rate arrangements) on inflation persistence using a time-varying coefficients framework in a panel of 68 countries … (1993–2013). We show that explicit IT has a stronger effect on taming inflation persistence than implicit IT and is …

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

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

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

Unconventional fiscal policy uses announcements of future increases in consumption taxes to generate inflation … households increased their inflation expectations and willingness to purchase durables before the increase in VAT. Future …

(VAT) effective in 2007. This shock increased German households' inflation expectations during 2006, as well as actual … study the causal effect of unconventional fiscal policies on consumption expenditure via the inflation-expectations channel … inflation in 2007. Matched households in other European countries serve as counterfactuals in a difference …

2007. The shock increased households' inflation expectations during 2006 and actual inflation in 2007. Germans' willingness …Unconventional fiscal policy uses announcements of future increases in consumption taxes to generate inflation … to purchase durables increased by 34% after the shock, compared to before and to matched households in other European …

predicts a short-term inflation-output trade-off, a liquidity effect, countercyclical markups, and procyclical wages after …