random walk. We use our model to investigate the monetary policy response to inflation and business cycle fluctuations in the …

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 …

participants are tasked with repeatedly forecasting inflation in a simple macroeconomic model featuring only the dynamics of … interest rates, inflation and inflation expectations. Average-inflation targeting can approximate the price path observed under … reflect the concern of the central bank for past inflation gaps. However, this depends on the exact specification of the …

This paper investigates the international spillovers of government debt and the associated risk of inflation within a … inflation at the cost of the funded country. In response to these conflicting interests about inflation, inflation risk may rise … with the level of debt in the PAYG country. Higher inflation risk harms both countries. Actually, in contrast to the debt …

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 …