changes in inflation and the output gap. On this basis, we assess the trade-off between economic stabilization and debt …

: lagged expectations about monetary policy influence the current inflation rate through an indexation rule. No structural … inflation persistence is assumed. We show that this model can capture stylized facts about short-run inflation dynamics both in … between the degree of inflation persistence and the stability and transparency of monetary policy. Thereby, our model can …

non-atomistic unions.It is shown that concentrated labor markets call for more aggressive inflation stabilization. This is …

Inflation in the euro area has been falling since mid-2013, turned negative at the end of 2014 and remained below … by means of sign restrictions, to inflation and economic activity. Shocks to oil supply do not tell the full story about … contractionary. A country analysis confirms that the negative effects of oil supply and monetary policy shocks on inflation was …

. The risk of future regime shifts has encompassing effects on equilibrium. Inflation is systematically higher than it would … stability. This inflation bias is increasing in the real value of government debt. Regime-switching probabilities are not … interest rate sufficiently moderately when inflation increases. Lower fiscal dominance risk, in turn, mitigates the inflation …