fraction of price changes increases with inflation. In addition, in the presence of strategic complementarities, they predict …

, consistent with the evidence, increases with inflation. Because we assume that firms sell multiple products and choose how many … inflation accelerator-a feedback loop between inflation and the fraction of price changes-that significantly increases the slope … of the Phillips curve during periods of high inflation. Applied to the U.S. time series, our model predicts that the …

inflation. Taking as given the paths of nominal labor compensation and labor productivity to approximate the evolution of …

cyclical movements in Treasury bond premia. Downward nominal rigidities create state-dependence in output and inflation … dynamics: a higher level of inflation makes prices more flexible, leading output and inflation to be more volatile, and bonds … to become more risky. The model matches well the relation between the level of inflation and a number of salient macro …

level and the dynamics of inflation. I compare the model's predictions with those of a perfectly competitive, flexible price … rigidity delivers an extremely close approximation both of the price/unit labor cost ratio and of the inflation series, even …

We review the main New Keynesian inflation equations that have arisen as a result of aggregation from individual firms …' price rigidities. We find that, on the whole, they cannot account for inflation persistence, a key feature of the empirical … dynamics of inflation, and with important policy implications. The only exception seems to be when price stickiness is combined …

Various inflation forecasting models are compared using a simulated out-of-sample forecasting framework. We focus on … the question of whether monetary aggregates are useful for forecasting inflation, but unlike previous work we examine a …

This study analyses India's inflation using the Phillips curve theory. To estimate an open-economy Phillips curve, we … need three variables: (1) inflation (2) the output gap and (3) the real effective exchange rate. In India, the incorrect … composite consumer price index (CCPI) was the best measure of inflation, and should be used to construct the real effective …

This paper examines inflation dynamics in the Unites States since 1960, with a particular focus on the Great Recession …. A puzzle emerges when Phillips curves estimated over 1960- 2007 are used to predict inflation over 2008-2010: inflation … by theories of costly price adjustment: we measure core inflation with the median CPI inflation rate, and we allow the …