Inflation persistence is sometimes defined as the tendency for price shocks to push the inflation rate away from its … steady state—including an inflation target—for a prolonged period. Persistence is important because it affects the output … costs of lowering inflation back to the target, often described as the “sacrifice ratio”. In this paper I use inflation …

are affected by the undershooting of the euro area inflation target. To shed light on this issue, we estimate an open …-economy, New Keynsian Phillips curve, in which we control for imported inflation. Regression results suggest that falling food and … energy prices have been the main disinflationary driver. But low core inflation in the euro area has also had a clear and …

This paper focuses on the role of debt maturity in managing the government’s incentives to use opportunistic inflation … powerful instrument to affect the time profile of the inflation tax base and, hence, to mitigate the distortions introduced by …

This paper examines two important issues for a small high-inflation open economy with trade controls where the …

This paper focuses on the output costs of disinflation. A model of inflation with both forward and backward elements … seems to characterize reality. Such an inflation model is estimated using data for industrial countries, and the output … is considered. An alternative, more credible policy may be to announce an exchange rate peg to a low inflation currency …

This paper examines the welfare effects of mitigating the costs of inflation. In a simple model where money reduces … transaction costs, a fall in the costs of inflation is equivalent to financial innovation. This can be caused by paying interest … on deposits, indexing money, or “dollarizing.” Results indicate that financial innovation raises welfare in low inflation …

We show that the presence of nominal non-indexed government debt could give rise to more than one equilibrium inflation …

This paper examines the behavior of private sector credit in chronic inflation countries that undergo exchange rate …-based inflation stabilizations. It concludes that these programs are characterized by a strong increase in private sector credit, both …, and Israel support a negative statistically significant relationship between credit and inflation for Mexico, Argentina …