We analyze empirical links between the perceived tail-risk of inflation, the policy rate, longer-term interest rates … always in reaction to Fed announcements; and, (v) our impulse responses demonstrate that odds of extreme inflation outcomes …

idiosyncratic components, we study the regime dependence of the inflation-RPV relation in Argentina and the USA. Under High …Using frequency domain techniques to separate short and long run dynamics and decomposing inflation into its common and … inflation, strong long-run comovement between RPV and Inflation is found for both economies, that extends to the short run …

-causes inflation in the euro area. Based on data from 1970 to 2006 and forecasting horizons of up to 12 quarters, there is surprisingly … power of money growth for inflation is substantially lower in more recent sample periods compared to the 1970s and 1980s …. This cautions against using money-based inflation models anchored in very long samples for policy advice. …

inflation as one component of future real wages. This paper scrutinizes whether countries in CEE that officially announce an … inflation target are tempted to act time-inconsistently and switch from the announced inflation target to an exchange rate … target in order to sustain higher output via surprise inflation. If market participants discover the time-inconsistency, they …

prototypical New Keynesian model fit to Japanese data exhibits orthodox dynamics during Japan's episode with zero interest rates …. We then demonstrate that this specification is more consistent with outcomes in Japan than alternative specifications …

about deviations in inflation from a target level. Under a quadratic cost of interest rate adjustments and interventions the … model also predicts that interventions will be decreasing in inflation expectations and in the real exchange rate but … Least Squares and an Ordered Probit model. The empirical analysis uses daily intervention data for Australia, Japan and …

inflation, particularly in the 1970s, and the choice of an exchange rate regime consistent with domestic monetary and fiscal … reminiscent of the global inflation generated by the weak dollar in the 1970s. …

In recent years the world's two largest inflation-targeting central banks - the US Federal Reserve (the Fed) and the …, both revisions quickly became antiquated when inflation started to rise again in the wake of the pandemic. The change in … macroeconomic context (from stubbornly low inflation to persistent higher inflation) led both central banks to advocate 'policy …

108.6 percent. Inflation reduced this ratio about 40 percent within a decade. Yet there are some important differences … inflate. It suggests that when economic growth is stalled, the U.S. debt overhang may trigger an increase in inflation of … about 5 percent for several years. This additional inflation would significantly reduce the debt ratio, even with some …