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 …

We examine the global dimension of inflation in 24 OECD countries between 1980 and 2007in a traditional Phillips curve … affect inflation through (the common part of) domestic demand and supplyconditions. Our most important result is that the … common component of changes in unit laborcosts notably affects inflation. We also find evidence that movements in import …

relative-price changes on inflation fluctuations. Therelative price of the flexible-price good represents a shift parameter of … the NewKeynesian Phillips curve. The optimal monetary policy is to target sticky-price inflation,rather than a broad … inflation measure... …

looking pricing account for the observed persistence in aggregate inflation. Second, price-setting responds to movements in … marginal costs, which should therefore be the driving force to observed inflation dynamics. This is not always the case in … conditions under which imposing homogeneity results in overestimating a backward-looking component in (aggregate) inflation, and …

consistent with the theory if import prices are given substantial weightin measuring marginal cost, rejecting the labour costs …