We introduce a dynamic panel threshold model to shed new light on the impact of inflation on long-term economic growth … industrialized countries, our results confirm the inflation targets of about 2% set by many central banks. For non …-industrialized countries, we estimate that inflation hampers growth if it exceeds 17%. Below this threshold, however, the impact of inflation …

How much does quality adjustment matter in measuring consumer price inflation? To address this question, we use … inflation only by 0.06 percentage points, which is balanced out by an increase due to quantity adjustment (e.g. a smaller … deriving the distribution of member states’ cumulative inflation rates for typical quality-adjusted products. Our macro …

Recent monetary search models emphasize that the real effects of inflation via its impact on price dispersion depend on … the level of search costs and, thus, on the level of market integration. For less integrated markets, the inflation …-price dispersion nexus is predicted to be asymmetrically V-shaped which implies an optimal inflation rate above zero. For highly …

We assess the effects of financial shocks on inflation, and to what extent financial shocks can account for the … shocks through sign restrictions. Our main finding is that expansionary financial shocks temporarily lower inflation. This … during the latest financial crisis. We then explore the transmission channels of financial shocks relevant for inflation, and …

We tackle two questions in this paper: In the sovereign debt crisis, what moves the euro area inflation outlook and has … the firm anchoring of medium to long-term inflation expectations been touched? Deriving densities from a new data set on … options on the euro area harmonized index of consumer prices provides us with the full distribution of inflation expectations …

monetary policy reduces the persistence of inflation. Taking into account the fractional integration of inflation, we confirm … that inflation dynamics differed considerably across Euro area countries before the start of EMU. Since 1999, however …, results obtained from panel estimation indicate that the degree of long run inflation persistence has converged. In line with …

constraints (IBC) condition via unit root test with structural break and co-integration through Gregory-Hansen test in a 117 long … does not hold for the Brazilian economy. However, there is co-integration among the series used in this work and the …

is fundamentally uncertain which covariates are relevant. Thus cointegration is often analyzed in partial systems … significant cointegration outcome using a bootstrapped rank test (Cavaliere, Rahbek, and Taylor, 2012) in the bivariate sub … application of a long-run Phillips curve (euro-area inflation and unemployment). The methods that include the covariates do not …