, prompting them to raise markups and prices in anticipation of potentially higher future inflation. These findings establish a … connection between heightened uncertainty, higher core inflation, and increased profits. …

of the New Keynesian Phillips Curve (NKPC) is that they fail to capture the extent of inflation inertia in the data. In …

When inflation picks up, central banks are most concerned that the de-anchoring of inflation expectations and the … ignition of wage-price spirals will trigger inflation dynamic instability. However, such scenarios do not materialize in the … updated according to the actual inflation process, with indexed wages, and persistent inflation shocks. In these cases, a more …

(automatic stabilisers) assist or hinder monetary policy when the latter takes a standard forward-looking inflation targeting … output and inflation variability in the presence of such a monetary policy rule. …

ability to explain the facts, such that the theory supports both a negative and a positive response of inflation. Central to … inflation at near-zero nominal interest rates. We show how (conventional and unconventional) monetary policy shocks enlarge the …

their heterogeneity. We exploit survey data on output and inflation expectations by individual professional forecasters. We …