. Previous literature has highlighted the role of an economy's "structure" - such as its inflation volatility, inflation rate …, forecasts predicting how a given exchange rate movement will impact inflation at a specific point in time should take into …

. Aggregating the model in closed form, we show that it delivers radically different predictions for the optimal inflation rate than … canonical sticky price models featuring homogenous firms: (1) the optimal steady-state inflation rate generically differs from … zero and (2) inflation optimally responds to productivity disturbances. Using micro data from the US Census Bureau to …

Time-variation in disagreement about inflation expectations is a stylized fact in surveys, but little is known on how … inflation and inflation expectations, whereas both decline when disagreement is low. Estimating a smooth-transition model on U ….S. data shows significantly different responses in inflation and inflation expectations consistent with theory. …

inflation and output. In normal times, factor costs dominate firms’ marginal costs and hence inflation; credit spreads and the … stick shape. This mechanism also weakens the effects of forward guidance on inflation, since such policy reduces spreads and …

strategies with a strong history dependence lose their advantage over inflation targeting in mitigating a demand …-driven recessions when interest rates are constrained by the ELB. For supply shocks, inflation t argeting o utperforms h istory …-dependent r ules f or a s ufficiently high degree of BR. An exponential average inflation targeting rule, which features a …

This paper contrasts empirically four leading models of inflation dynamics - the accelerationist Phillips curve (APC …

The uncertainty of U.S. core inflation, measured by the stochastic volatility of forecast errors, has soared to a level … increase after a positive shock to core inflation uncertainty in a vector autoregression. Endogenous changes in household … inflation expectations help to understand the transmission mechanism through which an inflation uncertainty shock generates …

Long-term inflation expectations taken from the Survey of Professional Forecasters are a major source of information … information content of inflation-linked swap rates for the next survey outcome. Using a mixed data sampling approach, we find that … professionals account for the daily dynamics of inflation swap rates when they submit their long-term inflation expectations. We …