Inflation rates in a number of OECD follow a common trend over the past four decades: inflation starts out low in the … in the behavior of trend inflation suggests that any explanation of long run inflation trends ought to apply across OECD …-varying NAIRU, can explain long run trends in U.S. inflation. In this paper we show that this result cannot serve as an explanation …

two-way communication between the central bankand the public affects inflation dynamics. When inflation target is … hence the bank can stabilize inflation. However, when inflation targetis unobservable or less credible, the public updates … their perceived inflation target and theinformation revealed from markets to the bank becomes less perfect. The degree of …

The remarkable stability of low domestic inflation in many countries requires explanation. In this paper, a number of … continuing low inflation, but also its coexistence with rapid growth and low real interest rates. Unfortunately, the analysis …

and foremost, as a commitment device. In our setting, a monetarytarget helps anchoring inflation and inflation … as a strong response to deviations of inflation from target and to theactivity growth gap. In contrast, the response to …

setting causes inflation persistence. We analyse how the endogeneityof the capital stock changes the macroeconomic dynamics …

-term interest rates to the Bank of England’s inflation report andto macroeconomic announcements. Due to the quarterly frequency at …, the more timehas elapsed since the latest release of an inflation report, market volatility shouldincrease, the price …

consensus is that real wage rigidities can be a useful mechanismto induce the inflation persistence that is absent in the …