We use an estimated medium-scale HANK model to investigate how the tradeoff between stabilizing inflation and … demand shocks via their exposure to highly procyclical profits-for them, stabilizing consumption and inflation coincide. The … poor are more vulnerable to supply shocks, hence aggressively stabilizing inflation is costly in terms of their consumption …

rate both matter for determining inflation and economic activity. …

do not force a central bank to tolerate higher inflation, but may generate a tradeoff between the central bank …'s objectives for inflation and real activity. The presence and size of this tradeoff depends on how flexible prices are in the …

. 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 …

To study inflation expectations and associated risk premia in emerging bond markets, this paper provides estimates for … prices that are only weakly correlated, the results indicate that long-term inflation expectations in Mexico are well … anchored close to the inflation target of the Bank of Mexico. Furthermore, Mexican inflation risk premia are larger and more …

central banks target inflation at a rate of about 2 percent. Many economists have recently proposed even higher inflation … importance of appropriately accounting for a low, positive trend inflation rate for the conduct of monetary policy. We first … review empirical research on the evolution and dynamics of U.S. trend inflation, as well as some proposed new measures to …