literature, cannot explain the persistence observed in actual inflation. We argue that two of the more prominent alternative …, are highly problematic. Fuhrer and Moore (1995)'s formulation generates inflation persistence, but this is a consequence … that workers care about the current real wages of other workers, one obtains the standard formulation with no inflation …

inflation expectations. We develop this measure using assumptions common in economic analysis of open economies. Using quarterly …

aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …

For expectations of price inflation to affect interest rates, they must affect the behavior of borrowers and lenders or … both. This paper analyzes the emergence of the inflation premium in long-term interest rates as the explicit result of … to estimate the magnitude of the inflation premium due to this portfolio behavior but also to evaluate the respective …

has evolved to study inflation in Japan. Our key finding is that labor market dynamics shifted after 1998 so that … relationship between wages and prices, so wage inflation has become a much less important determinant of price inflation …

-sample estimation. In contrast to Orphanides (2002, 2003), I find that the Fed's response to the real-time forecast of inflation was … coefficients. The estimation is based on real-time data and accounts for the presence of heteroskedasticity in the policy shock … (2000). However, the response to inflation was strong before 1973 and gradually regained strength from the early 1980's …

inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model which … resolves this apparent micro - macro conflict. Our model is consistent with post-war U.S. evidence on inflation inertia even …

inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after …

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 …

activity and inflation as latent variables. We incorporate these latent variables into a factor-augmented vector autoregression … activity and inflation, consistent with previous studies. In contrast to much of the literature, however, we find that central …-bank-determined changes in Chinese interest rates also have substantial impacts on economic activity and inflation, while other measures of …