-term liquidity effects, where monetary costs act as transaction costs and the quantity theory of money is verified …

Understanding the sources of inflation persistence is crucial for monetary policy. This paper provides an empirical … assessment of the influence of inflation expectations' anchoring on the persistence of inflation. We construct a novel index of … inflation expectations' anchoring using survey-based inflation forecasts for 45 economies starting in 1989. We then study the …

This paper develops a small model of the output-inflation process in the United States in order to examine the … interest rates respond contemporaneously to output and inflation and a forward-looking policy rule that exploits information … model of inflation where positive deviations of aggregate demand from potential are more inflationary than negative …

This paper studies the role of central bank communication of its economic assessment in shaping inflation dynamics … agents'' understanding of policy reasoning, could bring about less volatile inflation and interest rate dynamics, and afford …

available to the authorities and the nature of the policy game play a key role in determining the inflation rate and output in … the economy. Furthermore, the model can be solved for the optimal degree of inflation aversion of the central bank. , a …

flexible prices. Second, under the optimal policy the volatility of non-tradable inflation is close to zero. Third, stabilizing … nontradable inflation is optimal regardless of the financial structure of the small open economy. Even for a moderate degree of …