We test the menu cost model of Ball and Mankiw (1994, 1995), which impliesthat the impact of price dispersion on … inflation should differ between inflation anddeflation episodes, using data for Japan and Hong Kong. We use a random … both the inflation and deflation periods, and the parameteron the second moment changes sign in the deflation period, as …

, thebusiness cycle, and inflation, on account of the pronouncedprocyclical pattern of house prices. Are house prices asymptom of … transmissionmechanism by which changes in short-term interest rates affectconsumption, the output gap, and hence inflation. It isimportant …

on inflation measures that are likely goals for U.S.monetary policy, namely the consumer price index (CPI) andthe …[...]This article provides a systematic evaluation of severalproposed measures of U.S. core inflation: the popular ex … currentdebate on this issue, we adopt a general framework for theanalysis. Regarding the choice of aggregate price indexes, wefocus …

[...]In this article, we model the relationship between goodsinflation and services inflation from 1967:2 to 2002:4. To … helpinform the inflation debate, we then use our results to forecastinflation for 2003. The specific inflation series that we … services inflation have experiencedpermanent increases and reductions, but these shifts havemoved roughly in tandem.2 That is …

[...]Inflation targeting in New Zealand followed legislationthat mandated a Policy Targets Agreement (PTA)between the … elected government and the newlyindependent central bank, which resulted in a jointlydecided numerical target for inflation.[...] …

Interest in commodity prices as indicators of consumerprice inflation has ebbed and flowed withthe rise and fall in … predictivepower has returned. Inflation hawks point to an outpouringof studies in the late 1980s showing a strong empiricalconnection … between commodity prices and subsequentconsumer inflation. Indeed, the concern over commoditieshas grown to the point where …

output and for both domestic GDP and CPI inflation rates can replicate thecooperative allocation.[...] …

This paper explores the influence of wage and price staggering on monetary persistence. Weshow that, for plausible … parameter values, wage and price staggering are complementary ingenerating monetary persistence. We do so by proposing the new …