stabilize price movements in the flexible price sector. Also, in the presence of financial frictions, stabilizing core inflation …In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating … the flexible price equilibrium. In this paper, we develop a two-sector two-good closed economy new Keynesian model to …

the minimum wage and to the micro patterns of price stickiness. For that purpose, we use a unique dataset of individual … price quotes collected to calculate theConsumer Price Index in France and we estimate a price rigidity model based on a …

We model empirically the role of labor market institutions in affecting the response of inflation to labor market and …-country differences in inflation adjustment for the "sheltered" (non-trading) sector; the effects in the "exposed" (trading) sector are … the Phillips curve in both sectors. More active LM policies also reduce the persistence of inflation. However, but only in …

This paper evaluates the success of Inflation Targeting on inflation and growth on a large panel data set of both … evidence to show that the support for a successful Inflation Targeting policy is very weak or non-existent. We use various … the process by which inflation targeting is hypothesised to influence inflation and growth, Section 3 surveys this …

- although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … setting (in which real variables not only affect inflation, but are also influenced by it), standard wage-price staggering … asserted that, in the context of the new Phillips curve (NPC), inflation is a jump variable. We argue that this persistency …

associated with significant differences in the response of inflation to unemployment and exchange rate shocks. More wage … coordination and higher union density flatten the Phillips curve and increase the inflation response to the real exchange rate, i …

In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize … welfare by replicating the flexible price equilibrium. We analyze this result in the context of developing economies, where a … is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting …

allocation decisions. We define a measure of the price of impure altruism as the additional proportion of income sacrificed by a … overall charitable donations. We discuss the implications of our experimental results for both theory and policy …

, phenomena, and history. Given the key role that the Non-Accelerating Inflation Rate of Unemployment (NAIRU) has in the … macroeconomic theory as well as its role in determining employment theories, it is raised the need for a thorough evaluation of its …