focuses solely on stabilizing nominal wage inflation. Furthermore, this simple wage stabilization rule is remarkably robust to …

In the United States, the rate of price inflation falls in recessions. Turning this observation into a useful inflation … forecasting equation is difficult because of multiple sources of time variation in the inflation process, including changes in Fed … policy and credibility. We propose a tightly parameterized model in which the deviation of inflation from a stochastic trend …

Recently a market in options based on CPI inflation (inflation caps and floors) has emerged in the US. This paper uses … quotes on these derivatives to construct probability densities for inflation. We study how these pdfs respond to news … empirical pricing kernels. The options-implied densities assign considerably more mass to extreme inflation outcomes (either …

What accounts for inflation after 2008? We use the prominent pre-crisis Smets-Wouters (2007) model to address this … question. We find that due to price markup shocks alone inflation would have been 1% higher than observed and 0.5% higher that … responsible for the slow recovery of employment, though not for the initial drop. Monetary policy shocks predict an inflation rate …

interest on reserves. While their effects on output and inflation are small, these policies require major adjustments in the …

the adoption of inflation targeting. However, the recent financial crisis and the call for central banks to focus more on …

This paper examines the recent behavior of core inflation in the United States. We specify a simple Phillips curve … based on the assumptions that inflation expectations are fully anchored at the Federal Reserve’s target, and that labor …-market slack is captured by the level of short-term unemployment. This equation explains inflation behavior since 2000, including …