This paper asks whether a textbook Phillips curve can explain the behavior of core inflation in the euro area. A … critical feature of the analysis is that we measure core inflation with the weighted median of industry inflation rates, which … is less volatile than the common measure of inflation excluding food and energy prices. We find that fluctuations in core …

This paper considers how the role of inflation as a leading business-cycle indicator affects the pricing of nominal … growth and inflation. We solve for yields under various assumptions on the evolution of investor beliefs. If inflation is bad … spreads are high in times when inflation news are harder to interpret. This is relevant for periods such as the early 1980s …

inflation risk that co-moves with expected inflation itself …

explained largely by changes in expected inflation. It presents and tests a model of expected, after-tax real interest rate … changes in anticipated inflation has been below levels anticipated by many investigators; (2) how the measured impact on … did so by an estimated 24 basis points);(4) inflation uncertainty produces no significant impact on interest rates due to …

important factor in the USD market, and inflation beliefs the most important factor in the EUR market. This is consistent with …