Official price indexes, such as the CPI, are imperfect indicators of inflation calculated using ad hoc price formulae … different from the theoretically well-founded inflation indexes favored by economists. This paper provides the first estimate of … how accurately the CPI informs us about "true" inflation. We use the largest price and quantity dataset ever employed in …

If inflation expectations become firmly anchored at the inflation target even when average inflation deviates from the … target, the long-run Phillips curve becomes non-vertical. During 1997-2011, average inflation expectations in Sweden have … been close to the inflation target of 2 percent, whereas average inflation has fallen short of the target by 0.6 percentage …

ideas. The coroner's evidence consists of the small standard deviation of the core inflation rate in the past two decades … despite substantial volatility of the unemployment rate, and in particular the common tendency of PC inflation equations to … predict ever greater amounts of negative inflation (i.e., deflation) over the years of labor-market slack since 2008 …

stimulus mostly generates inflation rather than output growth. To do this, I construct price-setting models with "volatility …

inflation erode the real value of its nominal price until it reaches some point s. Then, the seller pays the menu cost and …

-pricing theory, is calibrated to analyze the effects of monetary policy and financial innovation. We show that inflation can raise … output, employment and investment, plus improve housing and stock markets. For the baseline calibration, optimal inflation is …

industries. Meanwhile governments responded with unprecedented stimulus packages, and inflation increased to its highest values … in 40 years. In this paper I investigate the contribution of aggregate monetary and fiscal policies to inflation … heterogeneous supply curves, industry-specific shocks to inelastically supplied goods increase aggregate inflation through a cost …

-profiteering measures on food necessities during a period of high inflation in Argentina. Using barcode-level data across more than 3 …

We study how investors respond to inflation combining a customized survey experiment with trading data at a time of … historically high inflation. Investors' beliefs about the stock return-inflation relation are very heterogeneous in the cross … section and on average too optimistic. Moreover, many investors appear unaware of inflation-hedging strategies despite being …