In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize … welfare by replicating the flexible price equilibrium. We analyze this result in the context of developing economies, where a … is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting …

stabilize price movements in the flexible price sector. Also, in the presence of financial frictions, stabilizing core inflation …In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating … the flexible price equilibrium. In this paper, we develop a twosector two-good closed economy new Keynesian model to study …

This paper evaluates the success of Inflation Targeting on inflation and growth on a large panel data set of both … evidence to show that the support for a successful Inflation Targeting policy is very weak or non-existent. We use various … the process by which inflation targeting is hypothesised to influence inflation and growth, Section 3 surveys this …

We study the link between expected inflation and wages using novel panel data from German firms and employees. We find … that pass-through - the percentage point change in wage growth given a one percentage point change in expected inflation … extensive margin, expected inflation has little effect on additional wage negotiations. …

How costly is inflation to workers? Answers to this question have focused on the path of real wages during inflationary … periods. We argue that workers must take costly actions ("conflict") to have nominal wages catch up with inflation, meaning … there are welfare costs even if real wages do not fall as inflation rises. We study a menu-cost style model, where workers …

through to retail prices. -- Price stickiness ; minimum wage ; inflation ; restaurant prices … the minimum wage and to the micro patterns of price stickiness. For that purpose, we use a unique dataset of individual … price quotes collected to calculate the Consumer Price Index in France and we estimate a price rigidity model based on a …

a dynamic panel-data model, our estimates indicate that decline of import-price sensitivity to the exchange rate is not … sensitivity of import prices has not fallen since 1999. We also point out a significant role played by the inflation in the … inflation environment. Overall, our findings support the view that the extent of pass-through is comprised of both macro- and …

associated with significant differences in the response of inflation to unemployment and exchange rate shocks. More wage … coordination and higher union density flatten the Phillips curve and increase the inflation response to the real exchange rate, i …

employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation … ; matching models ; labor market search ; inflation persistence ; real wage rigidity …