assumptions on the functional correspondence between price inflation, inflation expectations and marginal costs. Expectations are … not assumed to be an unbiased predictor of actual inflation and instead derived from the European Commission’s Consumer … Survey data. The results suggest that expectations drive inflation with a lag of about 6 months, which casts further doubt on …

This paper discusses the likely evolution of U.S. inflation in the near and medium term on the basis of (1) past U ….S. experience with very low levels of inflation, (2) the most recent Japanese experience with deflation, and (3) recent U.S. micro … evidence on downward nominal wage rigidity. Our findings question the view that stable long-run inflation expectations and …

This paper analyzes euro area and U.S. inflation dynamics since the beginning of the 1990s by estimating New Keynesian … hybrid Phillips curves with time-varying parameters. We measure inflation expectations by subjective forecasts from Consensus … results indicate that in both economic areas the inflation dynamics have steadily become more forward-looking over time. We …

It has been widely argued that inflation persistence since WWII has been widespread and durable and that it can only be …

hand and the inflation rate on the other hand. Empirically, we estimate this relationship by developing three different … markets for goods and services will push up inflation. We show the empirical relevance of the modified output gap for Spain …

, consumption, investment and unemployment) has a distinct dynamic from disagreement about nominal variables (inflation and interest … nominal series. Country-by-country regressions for inflation and interest rates reveal that both the level of disagreement and …

household and expert inflation expectations in five core European economies (France, Germany, Italy, Netherlands and Spain … in high inflation countries are using higher best fitting constant gain parameters than those in low inflation countries … frequently than households. Furthermore, household expectations in the Euro Area have not converged to the inflation goal of the …

nominal series. Country-by-country regressions for inflation and interest rates reveal that both the level of disagreement and …

to generate inflation risks on long-term nominal bonds when placing high coefficient on the output gap in the Taylor rule …. Our model is able to generate inflation risks when the coefficient on the output gap is small. In the entry model real … risks are lower and inflation risks are ceteris paribus higher than in the standard New Keynesian model without entry due to …

and does not require targeting a positive average rate of inflation. …