inflation and the role of inflation expectations. In relation to the recent weakness of inflation, we discuss the role of firm … supports the view that the absorption of slack and a firm anchoring of inflation expectations remain central to successful … inflation stabilisation …

changes does not change much with inflation and does not react much to aggregate shocks; (vi) changes in inflation are mostly … consistent with the predictions of a menu cost model in a low inflation environment where idiosyncratic shocks are a more …

inflation almost universally to the upside; and the second – starting well into the post-Lehman period – characterised by … stability with a hard 2% ceiling, functioned as a key shock-absorber in the relatively high-inflation years prior to the crisis … inflation and economic activity …

inflation would have been 1.1 p.p. and 0.75 p.p. lower, respectively, and the unemployment rate 1.1 p.p. higher than they …

Price inflation in the euro area has been stable and low since the Global Financial Crisis, despite notable changes in … output and unemployment. We show that an increasing share of high markup firms is part of the explanation of why inflation … countries and, by linking these markup developments to the evolution of sectoral level producer and consumer price inflation, we …