the aftermath of the economic collapse of 1999. Specifically, we produce selection-corrected predictions of counterfactual …

In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating … stabilize price movements in the flexible price sector. Also, in the presence of financial frictions, stabilizing core inflation … frictions a welfaremaximizing central bank should adopt flexible headline inflation targeting - a target based on headline …

the case of Germany, which has displayed a significantly lower increase in its labour force than its trade partners …

find a high degree of downward nominal wage rigidity, which for rates of inflation lower than three percent is shown to …

In the wake of the global energy crisis, many European countries used energy price controls to fight inflation and to …. In addition, during the energy crisis 2022 inflation rates rose dramatically and real wages dropped more than in any … other year in post-war Germany. There are also clear signs that the crisis is causing severe long-term economic damage …