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

relevant for pass-through: beliefs about the expected duration of the shock and its interaction with price rigidities. We then … employ a hypothetical vignette to study the causal effect of nominal and real rigidities as well as the nature of the shock …

the inflation rate respond to four different hypothetical exogenous shocks: a monetary policy shock, a government spending … predictions of changes in inflation are at odds with those of experts both for the tax shock and the interest rate shock. We show … shock, an income tax shock, and an oil price shock. While expert predictions are quantitatively close to benchmarks from …

combined with the theory of optimum currency areas. It shows how since the turn of the millennium a too expansionary monetary …

' inflation aversion and exit costs. …

stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …