This paper analyzes the pass-through from import prices to consumer price index (CPI) inflation in real time. Our … strategy follows an event-study approach that compares inflation forecasts before and after import price releases. Inflation … monthly import price releases provide important information for CPI inflation forecasts, and that the behavior of updated …

. We find that for all parametrizations with an equilibrium inflation rate of about 2 percent, there is a second … equilibrium with an inflation rate just above 10 percent. Thus, the model can simultaneously account for the low and high … inflation episodes in the United States. We carefully characterize the set of Markov equilibria along the parameter space and …

of inflation before beginning to raise the target federal funds rate, thereby shifting to a more accommodative policy …

nominal interest rates for a length of time that increases in proportion to how much past inflation has deviated - either … key principle is to respond strongly enough to deviations of past inflation from optimal levels by sufficiently increasing …