and inflation in these models through a real interest rate channel is shown to be misguided. A decline in output and … inflation is consistent with a decline, increase, or no change in the real interest rate. The expected path of Taylor rule … shocks and the New-Keynesian Phillips Curve are key for inflation and output; the real rate largely reflects consumption …

We use a simple New Keynesian model, with firm specific capital, non-zero steady-state inflation, long-run risks and … rate by 150 basis points causes output and inflation volatility to rise around 10% above their steady-state standard … deviations from the policy rule and the results are re-enforced by the presence of non-zero trend inflation. …

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 …

authority-a scenario increasingly relevant for many developed economies today. Central bank control over the long-run inflation …

" to inflation, an effect that is known as exchange rate pass-through (ERPT). In particular, if an exchange rate … relatively lower ERPT in the past two decades, the exchange rate continues to be a large determinant of inflation in several …