autoregressive model. In a high inflation regime the standard results from the literature obtain. In a low inflation regime output … shows no significant response to monetary policy while the inflation response is negative. The paper endogenously determines …

We analyze empirical links between the perceived tail-risk of inflation, the policy rate, longer-term interest rates … economic outlook rather than with the response to an exogenous shock; (iv) the few notable instances of the latter response are … always in reaction to Fed announcements; and, (v) our impulse responses demonstrate that odds of extreme inflation outcomes …

In a simple New Keynesian model, we derive a closed form solution for the inflation-gap persistence parameter as a … to inflation and the output gap, we show that the empirically observed changes in U.S. inflation-gap persistence during … Benati’s (2008) view that inflation persistence should not be considered a structural parameter in the sense of Lucas. …

inflation and its target, and the gap between output and its potential. Under 'the opportunistic approach to disinflation' a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output … stabilization when inflation is close to its target, allowing supply shocks and unforeseen fluctuations in aggregate demand to move …

stability. We model the default of a large bank and analyse the resulting contagion effects. This is compared to a common shock …

shock to demand, a negative supply shock and dislodged inflation expectations. We also illustrate the problems of a zero … combine an inflation target, Fisher equation, policy reaction function and short and long run aggregate supply analysis to …

The central bank's optimal reaction to foreign and domestic shocks is analyzed in an inflation targeting model allowing … that the interest rate response to foreign shocks is smaller when pass-through is low. Second, the inflation …

policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We …

We analyse the interaction between private agents? uncertainty about inflation target and the central bank's data … uncertainty. In our model, private agents update their perceived inflation target and the central bank estimates unobservable … economic shocks as well as the perceived inflation target. Under those two uncertainties, the learning process of both private …