Regional patterns of inflation persistence have received attention only at a very coarse level of territorial … disaggregation (NUTS3). Our results show that economically backward regions display greater inflation persistence. Moreover, we show …

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. …

trend inflation. We present a simple framework that provides straightforward analytical results directly comparable with the … standard case. Optimal monetary policy is strongly influenced by trend inflation and becomes less effective in controlling … inflation as trend inflation increases. Moreover: (i) under discretion, optimal monetary policy may not be implementable (i …

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 …