graphs and show how exposure to different narratives can affect expectations in an otherwise standard macroeconomic model. We …

-kinked demand schedule for goods produced by firms. Our model can jointly account for the modest decline in inflation during the … Great Recession and the surge in inflation post-COVID-19. Because our model implies a stronger transmission of shocks when … inflation is high, it generates conditional heteroskedasticity in inflation and inflation risk. Hence, our model can generate …

same drop in magnitude. We then examine the usefulness of real-time gap estimates for forecasting inflation and find no … deterioration in forecast performance when inflation projections are conditioned on real time rather than on final estimates of the …

Policy implications are derived for an inflation-targeting central bank, whose credibility is endogenous and depends on … rational expectations. We find that the region of allowed policy parameters is strictly larger than under rational expectations … occur, depending on the credibility of the central bank. Deflationary spirals can be prevented with a high inflation target …

We develop an experimental framework to investigate the quantity theory of money and the real effects of inflation in … an economy where money serves as a medium of exchange. We test the classical view that inflation reduces output and … welfare by taxing monetary exchange. Inflation is engineered by constant money growth. We conduct three treatments, where the …

We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy … rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important … persistent cost-push pressures in the economy leading to a significant deterioration in the inflation - output gap trade …

then provide a forecast evaluation for GDP growth and CPI inflation since 1982: we compare the staff forecasts with those …

of models in three dimensions: introducing household and firm heterogeneity, departing from rational expectations, and …

by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …