Inflation in Barbados is mainly imported. But how are external shocks transmitted to the domestic economy? Shouldn … dynamics and contribute to the existing literature in three ways: (i) we identify the process with which inflation expectations … are likely to be formed in Barbados; (ii) we add forward looking inflation expectations as one of the main channels …

relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes … flatter as inflation declines. Second, macroeconomic volatility shifts the Phillips curve outward, implying that stabilization …, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of …

In recent years, many countries have successfully reduced their inflation rates to relatively low levels of 2 to 3 … percent. The question then arises as to whether it would be desirable to move to even lower rates of inflation. The paper … examines the benefits and costs of moving from low inflation to even lower inflation by drawing together recent work on this …

This paper explores inflation determinants within the EU and implications for new members'' euro adoption plans. Factor … analysis partitions observed inflation in EU25 countries into common-origin and country-specific (idiosyncratic) components …. Cross-country differences in common-origin inflation within the EU are found to depend on gaps in the initial price level …

inflation rates mainly to make up for, and to perhaps exploit, lagging internal and external liberalization in their economies … changes in institutions, suggest that incentives may be diminishing, but not to the point where inflation levels below 5 … inflation, and enhancements to central bank independence could help shield these central banks from pressures …

Chinese inflation, particularly non-food inflation, has been surprisingly modest in recent years. We find that supply …-food inflation, as has foreign demand for Chinese goods. Domestic demand and monetary conditions seem less important, possibly … reflecting a large domestic output gap generated by many years of high investment. Inflation varies systemically within China …

In this paper three possible reasons are examined for a sluggish inflation response to a hard currency peg. Models of … credibility and the speed of private sector learning, which are shown to have a major impact on the speed of inflation adjustment …. But even if individual agents believe the government will not devalue, it is shown that inflation inertia can still arise …

This paper explains why sovereign issuers of reserve currencies do not use unexpected inflation to repudiate their … excessive money creation. It is shown that even without policy precommitment or aversion to inflation, the availability of … alternative currencies can support an equilibrium with a finite, time consistent inflation rate …

The robust negative correlation between openness and inflation found in cross-country data for the 1970s and 1980s has … disappeared in the 1990s. There is now a strong negative correlation of inflation with per capita GDP, as higher-income countries … that floating exchange rate regimes are associated with inflation rates at least 10 percent a year higher than pegged …

currency by keeping inflation low and steady. This paper provides evidence that monetary policy tightening aimed at maintaining … low and stable inflation could at the same time reduce consumption inequality over a 12-18 month horizon, commonly … benefit mainly from lower inflation. By contrast, the real consumption of individuals at higher ends of the consumption …