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. …

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 …

particularly focus on the implications for inflation dynamics. We will show how considering models with time-varying trend … inflation overcomes the initial difficulties of the New Keynesian Phillips Curve to match the empirical persistence of the time … series for inflation. Inflation is highly persistent, but much of that persistence is due to shifts in trend inflation. …

Most of the papers in the sticky-price literature are based on a log-linearization around the zero inflation steady … state, a simplifying but counterfactual assumption. This paper shows that when trend inflation is considered, both the long … results obtained by models log-linearized around a zero inflation steady state are quite misleading. Furthermore, the same is …

Most of the papers in the sticky-price literature are based on a log-linearization around the zero inflation steady … state, a simplifying but counterfactual assumption. This paper shows that when trend inflation is considered, both the long … results obtained by models log-linearized around a zero inflation steady state are quite misleading. Furthermore, the same is …

Most of the papers in the sticky-price literature are based on a log- linearization around the zero inflation steady … state, a simplifying but counterfactual assumption. This paper shows that when trend inflation is considered, both the long … results obtained by models log-linearized around a zero inflation steady state are quite misleading. Furthermore, the same is …