This paper examines the methods used by the Bank of Japan for the estimation of the output gap. Attention is paid to … and disadvantages of the various output gap measures. First, I examine the usefulness of the output gap for inflation …

The canonical New Keynesian model specifies inflation as the present-value of future real marginal cost. This paper … assess the model's ability to match the behavior of actual inflation. In accordance to the literature, the model fits Euro … and a completely failing model. Allowing for inflation inertia through backward-looking indexation narrows confidence …

employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

Regarding inflation as being a monetary phenomenon in the long-run is a widely-held view in modern macro economics. We … analyse this topic by means of a P-star model. Based on the quantity theory of money, this approach explains inflation via a …Die Aussage, dass Inflation langfristig ein monetäres Phänomen ist, ist eine grundlegende Erkenntnis der Makroökonomie …

This paper studies the importance of money for inflation in the euro area. An inflation equation is derived from a … small model that combines the supply and demand for money with a Phillips curve and the assumption that inflation … expectations develop adaptively. The model's solution attributes an impact on inflation not to actual money growth but to its core …