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 …

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

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 …

increase in social spending there could be a short-run increase in inflation in HIPC countries and (iii) the keys to long …

A questionnaire survey was conducted to explore how people think about inflation, and what real problems they see it as … old, and between economists and non-economists. Among non-economists in all countries, the largest concern with inflation … people or institutions acting badly. This standard of living effect is not the only perceived cost of inflation among non …

The new-Keynesian, Taylor-rule theory of inflation determination relies on explosive dynamics. By raising interest … rates in response to inflation, the Fed induces ever-larger inflation or deflation, unless inflation jumps to one particular … following policies we usually consider impossible. Therefore, inflation is just as indeterminate under "active" interest rate …

This paper examines the association between inflation, monetary policy and U.S. stock market conditions during the … episodes and find evidence that inflation and interest rate shocks had particularly strong impacts on market conditions in the … postwar era. Disinflation shocks promoted market booms and inflation shocks contributed to busts. We conclude that central …

stabilizing variability in output and inflation. Our findings suggest that a simple IFB rule that does not rely upon any direct … open economies, and uses it to assess the effectiveness of Taylor rules and Inflation-Forecast-Based (IFB) rules in … estimates of the equilibrium real interest rate and places a relatively high weight on the inflation forecast may perform better …