; (ii) because there is a redistribution of income from wages to profits and rent, which leads to a decrease in consumption … reaction of nominal wages to the increase in the price level might lead to even higher increases in prices, but mitigates the … proportional increase in nominal wages is higher than that of domestic prices, the distributional effect becomes positive. The …

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 …

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 …

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 …

inflation as one component of future real wages. This paper scrutinizes whether countries in CEE that officially announce an … productivity and inflation as components of future nominal wages. … inflation target are tempted to act time-inconsistently and switch from the announced inflation target to an exchange rate …

Correlations of inflation with the growth rate of money increase when data are averaged over longer time periods …. Correlations of inflation with the growth of money also are higher when high-inflation as well as low-inflation countries are … included in the analysis. We show that serial correlation in the underlying inflation rate ties these two observations together …

financed by money creation and to destabilizing expectations dynamics that can occasionally divorce inflation from fundamentals …. Our maximum likelihood estimates allow us to interpret observed inflation rates in terms of variations in the deficits … that cut inflation without reforming deficits. Our estimates also allow us to infer the deficit adjustments that seem to …

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 …

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 …