The recent decline in euro area inflation has triggered new calls for additional monetary stimulus by the ECB in order … inflation expectations, output gaps and other factors driving current inflation through the lens of the Phillips curve. It also … outputinflation nexus at low trend inflation. The note concludes from this evidence that the risk of a selfreinforcing deflation …

The recent decline in euro area inflation has triggered new calls for additional monetary stimulus by the ECB in order … inflation expectations, output gaps and other factors driving current inflation through the lens of the Phillips curve. It also … output-inflation nexus at low trend inflation. The note concludes from this evidence that the risk of a self …

alternative monetary policy strategies. We start with the relationship between output and inflation and investigate the fit of the … reject the nominal contracting model in favor of the relative contracting model which induces more inflation persistence, we … in countries which transitioned out of a high inflation regime such as France and Italy. We close the model by estimating …

euro area and Japanese inflation dynamics are best explained by Taylor-style contracts, while Buiter …-Jewitt/Fuhrer-Moore contracts perform somewhat better in fitting U.S. inflation dynamics. We are unable to fit Calvo-style contracts to inflation … backward-looking element. The completed model matches inflation and output dynamics in the United States, the euro area and …