Since 2000 U.S. inflation has remained both below target and silent to domestic slack and monetary interventions. A … inflation. The trend analysis shows that, starting from the '90s, despite very well-anchored expectations, slow-moving imported … "cost-push" factors induced deflationary pressure keeping trend inflation below target. The cycle block provides evidence in …

In this paper, we show that low trend inflation strongly affects the dynamics of a standard Neo-keynesian model where … monetary policy is described by a standard Taylor rule. In particular, we show that trend inflation: (i) enlarges the … average inflation in both theoretical and empirical analysis. -- Sticky Prices ; Taylor Rules and Trend Inflation …

We show that low trend inflation strongly affects the dynamics of a standard Neo-Keynesian model where monetary policy … is described by a standard Taylor rule. Moreover, trend inflation enlarges the indeterminacy region in the parameter … cannot disregard average inflation in both theoretical and empirical analysis. …