crisis is empirically examined. The standard model for themonetary analysis of inflation, i.e. the P-Star model by Hallman … long run dynamics of CPI inflation inIndonesia remarkably weIl. Hence, there is an empirical support for the assertion that …

increases with inflation, as is consistent with empirical evidence. The model derives a rich array of non-trivial effects of … inflation on the equilibrium deposit and the bank's portfolio. …

of monetary policy. We use a stylized macro model of Howitt (1992) to investigate inflation dynamics under alternative … interest rate in response to inflation. In particular, if the monetary authority only responds weakly to inflation, a … cumulative process with rising inflation is likely. On the other hand, a Taylor interest rate rule that sets the interest rate …

Empirical estimations suggest heavy-tailed unconditional distributions for inflation, the output gap and the interest … propose a model which replicates the above mentioned empirical features of inflation,the output gap and the interest rate and … distributions of inflation, the output gap and the interest rates exhibit heavy-tailed characteristics. Secondly, under an …