We investigate optimal horizons for targeting inflation in response to different shocks and their properties under … alternative preferences of an inflation-targeting central bank. Our analysis is based on a well specified macroeconometric model … inflation and output. Successful inflation targeting in such cases may require a complex interest rate response. The optimal …

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

This paper investigates the changing behavior of inflation expectations in response to the macroeconomic and policy … environment. Using a panel of professional forecasters covering thirteen years of inflation targeting period from Turkey, we … present evidence on the behavioral shifts in the inflation expectations associated with evolving macroeconomic and policy …

This paper examines the long-run effects of supply shocks (such as oil shocks) on inflation in the United States. The … persistence of supply shocks in U.S. inflation fell considerably during the period of Volcker's disinflation (1979-1982). My … the behavior of inflation expectations-agents expected shocks to persist in the pre-Volcker period, but not in the post …

adamant about preventing a rise in inflation? The large fiscal imbalance brings about inflationary pressures, triggering a … spiral of higher inflation, output contraction, and further debt accumulation. A coordinated commitment to inflate away the …

to support the standard objection to such policies: that they will lead to uncontrollable inflation. Theoretical models … support for a relationship between monetary financing and inflation. The findings lend support to recent calls for explicit …

Emerging market and developing economies (EMDEs) have experienced an extraordinary decline in inflation since the early … 1970s. After peaking in 1974 at 17.3 percent, inflation in these economies declined to 3.5 percent in 2017. Despite a … checkered history of managing inflation among many EMDEs, disinflation occurred across all regions. This paper presents a …

short some 20 million jobs. Further, there is no reason to believe that the current exceptionally low inflation rates are … transitory. Quite the contrary: without significant fiscal efforts to restore the bargaining power of labor, inflation rates are …

Modern Money Theory (MMT) has generated considerable scrutiny and discussions over the past decade. While it has gained …

This paper presents a model that pictures how inflation is determined in a decentralized market process where prices … setters of sequential contracts. An important property of the model is that inflation thus can be explained without any … reference to the quantity of money.Following up the finding that inflation is determined in a coordination game, it is …