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 …

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 …

result is that the model is able to generatepersistent responses in output, inflation, and total labor input to both …

" – although they generate price inertia, they cannot account for thestylised fact of inflation persistence. It is thus commonly … asserted that, in the context of thenew Phillips curve (NPC), inflation is a jump variable... …

examine the relevance of the cost channel for inflation dynamics in G7 countries. Since firms’ costs of working capital … inflation responses to monetary policy shocks, and can even lead to inverse inflation responses, when the cost channel is …