approach to address endogeneity. Consistent with economic theory, our estimates show a nonlinear demand function that exhibits …

Inflation is often assumed to affect all people in the same way. In practice, differences in spending patterns across … households and differences in price increases across goods and services lead to unequal levels of inflation for different … households. In this paper, we measure the degree of inequality in inflation across U.S. households for the period 1987-2001. Our …

This paper analyzes the potential effect of global market competition on inflation dynamics. It does so through the … lens of the Calvo model of staggered price setting, which implies that inflation depends on expected future inflation and a … setting and hence alter the dynamic response of inflation to marginal costs. I first discuss the behavior of the variables …

. 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 …

inflation and interest rates. We study a stylized New Keynesian model where the policy instrument is subject to a lower bound to … interest rates and inflation to study whether the decrease in the natural rate of interest leads to forecast densities … bound has a sizable effect on the distribution of future interest rates, its impact on forecast densities for inflation is …