decisions on the EU-wide average of inflation and growth or should it instead focus on (appropriately weighted) national welfare … losses based on national rates of inflation and growth? We find that a central bank that minimises the sum of national … common shocks is large relative to the inflation bias and if idiosyncratic demand shocks in the non-tradables sector are not …

medium run. In the event of a cost-push shock, the central bank leans with the wind to increase demand and reduce …

residuals of the policy rule equation at these shock dates accordingly. In spite of its utmost agnostic nature, this approach …

inflation. Hence, the initial response of inflation to monetary shocks is not sufficient to discriminate across models and for …

In this paper, we explore the degree of anchoring of consumers' individual long-run inflation expectations utilizing …-run inflation expectations became more anchored over the last decades, as the degree of co-movement between short- and long … seems that older cohorts, who experienced the high inflation period of the 1970s, remain less anchored in their long …

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 …

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 …