This paper evaluates new evidence on price setting practices and inflation persistence in the euro area with respect to …

We study how changes in the value of the steady-state real interest rate affect the optimal inflation target, both in …-for-one: increases in the optimal inflation rate are generally lower than declines in the steady state real interest rate. Our approach … allows us not only to assess the uncertainty surrounding the optimal inflation target, but also to determine the latter while …

macroeconomic frameworks. Among other things, we show that the optimal policy implicitly incorporates inflation targeting. We also … characterize the gains from making credible commitments to fight inflation and consider the implications of frictions such as …

and its implications for US output, hours and inflation. Second we evaluate the extent to which that responses can be …

inflation, imperfect indexation, and a lower bound on the nominal interest rate. In this setup, a decrease in the steady … the inflation target of eighttenths the size of the drop in the real natural rate of interest is warranted. Absent an … increase in the inflation target, and assuming the effective lower bound prevents the European Central Bank from implementing …

inflation, imperfect indexation, and a lower bound on the nominal interest rate. In this setup, a decrease in the steady … the inflation target of eight-tenths the size of the drop in the real natural rate of interest is warranted. Absent an … increase in the inflation target, and assuming the effective lower bound prevents the European Central Bank from implementing …