rate both matter for determining inflation and economic activity. …

. 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 …

We study the behavior of U.S. consumers' inflation expectations during the high inflation period of 2021-22 using data … from the Survey of Consumer Expectations. Short- and, to a lesser extent, mediumterm inflation expectations rose as … inflation surged in 2021. Disagreement and uncertainty about future inflation increased significantly. Then, in 2022, even as …

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 …