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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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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
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Modelling inflation in Australia
Brouwer, Gordon de; Ericsson, Neil R. - Federal Reserve Board (Board of Governors of the … - 1995
level of consumer prices is a mark-up over domestic and import costs, with adjustments for dynamics and relative aggregate …­ing' parameter constancy, and exogeneity. We also test this model against existing models of Australian prices: this model …
Persistent link: https://www.econbiz.de/10005368204
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Output and inflation in the long run
Ericsson, Neil R.; Irons, John S.; Tryon, Ralph W. - Federal Reserve Board (Board of Governors of the … - 2000
Cross-country regressions explaining output growth often obtain a negative effect from inflation. However, that result is not robust, due to the selection of countries in sample, temporal aggregation, and omission of consequential variables in levels. This paper demonstrates some implications of...
Persistent link: https://www.econbiz.de/10005368216