inflation target. In contrast, I show that the standard New Keynesian monetary model predicts that nominal interest rates should …

complementarities in price setting delivers a strictly positive optimal inflation in steady state, differently from standard New … inflation curbs the markups, especially those of the more productive firms, hence attenuating the inefficient dispersion of … markups. At low levels of inflation, the gains from the reduction in misallocation outweigh the cost of inflation …

synchronized within rather than across stores. Time variations in inflation can be attributed mainly to variations in the frequency …

economic activity, inflation and government debt in face of an occasionally binding lower bound on the nominal interest rate in … policy, the optimal fiscal policy rule features a strong counter-cyclical response to the deviation of inflation from the … inflation significantly improves welfare and reduces the lower-bound frequency. In addition, the optimal simple monetary and …

Is inflation persistence in the new EU Member States (NMS) comparable to that in the euro area countries? We argue that … show that due to frequent breaks in inflation time series in the NMS, parametric statistical measures assuming a constant …-varying mean leads to the reversal of this result and suggests similar or lower inflation persistence for the NMS compared to euro …

regards the possibility of a time-varying mean of inflation. Moreover, we conduct a sensitivity analysis across different … of the Phillips curve occurring in the early to mid 1980s, but not in inflation persistence once the mean shift is … allowed for. As a result of the structural change, the Phillips curve became flatter around a lower mean of inflation. Second …