We find strong econometric support for a break in the relationship between perceived and HICP inflation in the euro …

Time series estimates of inflation persistence incur an upward bias if shifts in the inflation target of the central … bank remain unaccounted for. Using a structural time series approach we measure different sorts of inflation persistence … allowing for an unobserved timevarying inflation target. Unobserved components are identified using Kalman filtering and …

This paper examines the causal effects of shifts in international food commodity prices on euro area inflation dynamics …%-30% of inflation volatility. In addition, large autonomous swings in international food prices contributed significantly to … the twin puzzle of missing disinflation and missing inflation in the era after the Great Recession. Specifically, without …

This paper provides a summary of current knowledge on inflation persistence and price stickiness in the euro area …, based on research findings that have been produced in the context of the Inflation Persistence Network. The main findings … are: i) Under the current monetary policy regime, the estimated degree of inflation persistence in the euro area is …

inflation differ over time. We show that the impact varies considerably over time, depends on the source of increased liquidity … (M1, M3-M1 or credit) and the underlying state of the economy (asset price boom-bust, business cycle, inflation cycle …

commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and … interest rates. Liquidity trap (LT) episodes are longer, however, the impact of interest rate policy commitments on inflation …

other variables, such as inflation and output gap, must adjust to ensure the solvency of public finances. We study the role …-off between inflation and output gap: The Persistence, Discounting and Hedging channels. Our findings, based on a rich prior … results indicate that optimal debt management is a significant margin to complement monetary policy in stabilizing inflation …

We propose a new model to decompose inflation swaps into genuine inflation expectations and risk premiums. We develop a … long-run, economically grounded determinants, such as the equilibrium real interest rate and the inflation target. Our … estimations deliver new insights into how macroeconomic variables affect market-based inflation expectation measures. …

the difference by demonstrating that, although the pass-through of marginal cost into inflation is substantial, the … advantage of a marginal cost-based Phillips curve for characterizing the transmission of supply shocks to inflation. …

offers a consistent framework that ties together wage growth, inflation expectations and price inflation. It is used to study … the surge and persistence of inflation in the post-pandemic period in Belgium. According to the model, a sequence of … inflation in this period. Though the Belgian replication of the model predicts sensitive short-term inflation expectations to …