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 …

. There is strong evidence of a positive and significant association between the pass-through and the average inflation rate … across countries and periods. The inflation rate, moreover, dominates other macroeconomic variables in explaining cross …

Financial instruments are subject to inflation taxes on the wealth they represent and on the nominal income flows they … production and shows that the value of the firm in this case is equal to the firm’s capital stock divided by inflation. The … resulting asset-pricing conditions indicate that the effect of inflation on asset returns differs from the effects found in …

stability under adaptive learning for interest rate rules that respond to inflation measures differing in their degree of price … stickiness. We find that rules responding to headline inflation measures that assign a positive weight to the inflation of the … the inflation of the sector with high price stickiness. By this we mean that they are more prone to induce non …

securities, they contributed to the four-digit inflation reached in 2006. The remedy for the current situation is clearly to …

Extending recent theoretical contributions on sources of inflation inertia, we argue that monetary uncertainty accounts …