The standard result in models of sticky prices is that an inflation rate target is better than a price level target at … economy that is characterized by flexible prices in one sector and sticky prices in another sector. An example is a highly … open economy that has flexible prices in the tradeable goods sector and sticky prices (due to Taylor-type overlapping wage …

This study examines the empirical relationship between changes in commodity prices and inflation by looking at the … performance of non-oil commodity prices as stand-alone indicators of inflation and in conjunction with other leading indicators of … inflation. The results indicate that the empirical link between commodity prices and inflation has changed dramatically over …

-period Taylor model, discretionary policy in the Calvo model does not accommodate predetermined prices in a way that inevitably …