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 …

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 …

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. …

trend inflation? We find that passive monetary detours are no longer possible when trend inflation is high, whatever fiscal …

This paper studies the challenge that increasing the inflation target poses to equilibrium determinacy in a medium …-sized New Keynesian model without indexation fitted to the Great Moderation era. For moderate targets of the inflation rate …