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Tradeoffs between inflation and output-gap variances in an optimizing-agent model
Erceg, Christopher J.; Henderson, Dale W.; Levin, Andrew T. - Federal Reserve Board (Board of Governors of the … - 1998
the special case in which prices are sticky and wages are perfectly flexible. When the model is calibrated to exhibit an …
Persistent link: https://www.econbiz.de/10005368225
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Price level convergence, relative prices, and inflation in Europe
Rogers, John H. - Federal Reserve Board (Board of Governors of the … - 2001
If price levels are initially different across the euro area, convergence to a common level of prices would imply that … inflation will be higher in countries where prices are initially low. Price level convergence thus provides a potential … between 1990 and 1999 prices did become less dispersed in the euro area. Convergence is especially evident for traded goods …
Persistent link: https://www.econbiz.de/10005368283
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Optimal monetary policy with distinct core and headline inflation rates
Bodenstein, Martin; Erceg, Christopher J.; Guerrieri, Luca - Federal Reserve Board (Board of Governors of the … - 2008
In a stylized DSGE model with an energy sector, the optimal policy response to an adverse energy supply shock implies a rise in core inflation, a larger rise in headline inflation, and a decline in wage inflation. The optimal policy is well-approximated by policies that stabilize the output gap,...
Persistent link: https://www.econbiz.de/10005368420
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Optimal monetary policy with staggered wage and price contracts
Erceg, Christopher J.; Henderson, Dale W.; Levin, Andrew T. - Federal Reserve Board (Board of Governors of the … - 1999
-optimal equilibrium that would occur under completely flexible wages and prices; that is, the model exhibits a tradeoff between … stabilizing the output gap, price inflation, and wage inflation. The Pareto optimum is attainable only if either wages or prices …
Persistent link: https://www.econbiz.de/10005712759
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Comovements in aggregate and relative prices: some evidence on neutrality
Pauls, B. Dianne - Federal Reserve Board (Board of Governors of the … - 1986
aggregate price level and to demonstrate econometrically its equivalence to the exogeneity of relative prices with respect to … role for supply-side disturbances in explaining comovements in aggregate and relative prices. …
Persistent link: https://www.econbiz.de/10005498851
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Indeterminacy with inflation-forecast-based rules in a two-bloc model
Batini, Nicoletta; Levine, Paul; Pearlman, Joseph - Federal Reserve Board (Board of Governors of the … - 2004
We examine the performance of forward-looking inflation-forecast-based rules in open economies. In a New Keynesian two-bloc model, a methodology first employed by Batini and Pearlman (2002) is used to obtain analytically the feedback parameters/horizon pairs associated with unique and stable...
Persistent link: https://www.econbiz.de/10005498842
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Forecasting U.S. inflation by Bayesian Model Averaging
Wright, Jonathan H. - Federal Reserve Board (Board of Governors of the … - 2003
Recent empirical work has considered the prediction of inflation by combining the information in a large number of time series. One such method that has been found to give consistently good results consists of simple equal weighted averaging of the forecasts over a large number of different...
Persistent link: https://www.econbiz.de/10005498904
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Real exchange rates and inflation in exchange-rate based stabilizations: an empirical examination
Kamin, Steven B. - Federal Reserve Board (Board of Governors of the … - 1996
Considerable research has focused on explaining why currencies appreciate in real terms after the nominal exchange rate is stabilized, but this research generally has taken a theoretical approach, and rarely has tested its hypotheses empirically. In this paper I estimate a simple...
Persistent link: https://www.econbiz.de/10005368141
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Optimal inflation persistence: Ramsey taxation with capital and habits
Chugh, Sanjay - Federal Reserve Board (Board of Governors of the … - 2005
Ramsey models of fiscal and monetary policy with perfectly-competitive product markets and a fixed supply of capital predict highly volatile inflation with no serial correlation. In this paper, we show that an otherwise-standard Ramsey model that incorporates capital accumulation and habit...
Persistent link: https://www.econbiz.de/10005368152
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Some evidence on the efficacy of the UK inflation targeting regime: an out-of-sample forecast approach
Huh, Chan - Federal Reserve Board (Board of Governors of the … - 1996
Inflation targeting (IT)--a policy framework that directly targets an explicit inflation goal--has gained widespread attention recently as it has been adopted by several OECD countries. There is a growing body of literature on the ultimate long-term benefits of price stability and on theoretical...
Persistent link: https://www.econbiz.de/10005368189