Showing 1 - 10 of 1,851
equilibrium values having explanatory power for subsequent consumer price inflation …
Persistent link: https://www.econbiz.de/10003433609
-Wouters model and its forecasts of real GDP growth and inflation are compared with those from two extensions. The first adds … extensions improve the density forecasts of real GDP and inflation and their joint forecasts up to an eight-quarter horizon. We … find that adding financial frictions leads to a deterioration in the forecasts, with the exception of longer-term inflation …
Persistent link: https://www.econbiz.de/10011813503
This paper studies the effect of monetary policy on inflation along the income distribution in several euro area …. On the one hand, different consumption shares imply that inflation by high-income households responds less to monetary … its reaction to monetary policy, which imply that inflation by high-income households responds more to monetary policy. …
Persistent link: https://www.econbiz.de/10014478496
In order to explain the joint fluctuations of output, inflation and the labor market, this paper first develops a … general equilibrium model that integrates a theory of equilibrium unemployment into a monetary model with nominal price … helps to explain the sluggishness of inflation and the persistence of output after a monetary policy shock. The ability of …
Persistent link: https://www.econbiz.de/10009636527
principal components estimator, suited to estimate systems of fractionally cointegrated processes. The proposed core inflation … measure is the scaled common persistent factor in inflation and excess nominal money growth and bears the interpretation of … monetary inflation. The proposed measure is characterised by all the properties that an u0093idealu0094 core inflation process …
Persistent link: https://www.econbiz.de/10009636528
-term inflation volatility in response to exogenous shocks can be optimal; the optimal response to adverse financial shocks is to … lower interest rates, if not at the zero bound, and to engineer a short period of controlled inflation; the Taylor rule may …
Persistent link: https://www.econbiz.de/10003969263
variances for all series, and decreases in the variances of inflation and the output gap, ithout any need of sunspot shocks …
Persistent link: https://www.econbiz.de/10003747974
Surprisingly it did not, or at least not directly. Using micro data on consumer prices and sectoral inflation rates … has altered the behaviour of retail price setting and/or inflation dynamics. We find no evidence that anything has changed … earlier patterns. On the contrary, we do find evidence of a decline in the persistence of the inflation process in the mid …
Persistent link: https://www.econbiz.de/10003297532
How monetary policy should be set optimally when the structure of the economy exhibits inflation persistence is an … important question for policy makers. This paper provides an overview of the implications of inflation persistence for the …
Persistent link: https://www.econbiz.de/10003208589
This paper studies optimal discretionary policy with parameter uncertainty about inflation inertia. Optimal policy … in the presence of uncertainty about inflation inertia, depending on the form of the central bank’s objective function …. Moreover, in the cases where optimal policy is not certainty equivalent, we find that inflation returns slightly more gradually …
Persistent link: https://www.econbiz.de/10003208613