Standard New Keynesian (NK) models feature an optimal inflation target well below two percent, limited welfare losses …-run Phillips curve between inflation and unemployment and a trade-off between price distortions and output hysteresis that change … the welfare-maximizing inflation level. For a plausible set of parameters, the optimal inflation target is in excess of …

determination of the central bank to leave unchanged its longterm inflation objective in the face of inflationary shocks. The … magnitude of private sector learning has been calibrated to match the volatility of US inflation expectations at long horizons …. Given such illustrative calibrations, we find that the costs of maintaining a given inflation volatility under weak …

environment affects how agents learn from new information. We show that as inflation rose in advanced economies, both households … and firms became more attentive and informed about publicly available news about inflation, leading them to respond less … to exogenously provided information about inflation and monetary policy. We also study the effects of RCTs in countries …

exacerbate the effect of productivity and other macroeconomic shocks on output and inflation. By offering a possibility of …

capital and use the resulting model to discuss the concept of the ‘non-accelerating inflation rate of unemployment’. We then …

exacerbate the effect of productivity and other macroeconomic shocks on output and inflation. By offering a possibility of …

capital and use the resulting model to discuss the concept of the 'non-accelerating inflation rate of unemployment'. We then …

monetary and credit aggregates are very often selected among the top predictors of inflation, with their predictive power … and credit variables in forecasting inflation, even if their information content is diluted in a much broader pool of …