target inflation rates as low as 2 percent. However, the effects of the constraint are non-linear with respect to the inflation … percent. The variability of output increases significantly and that of inflation also rises somewhat. Also, we show that the … increasingly short of potential with lower inflation targets. …

In the paper we propose a new methodological approach to core in- flation estimation, based on a frequency domain … principal components estimator, suited to estimate systems of fractionally cointegrated processes. The proposed core inflation … measure is the scaled common persistent factor in inflation and excess nominal money growth and bears the interpretation of …

Equilibrium correction models of the price level are often used to model inflation. Such models assume that the long …

for the existence of a bank lending channel. Finally, the estimation of the Structural-VECM highlights very rich dynamics …

inflation and the output gap, are unstable when estimated on euro area data and forecast poorly out of sample. We present an … argue reflects shifts in the publicu0092s perception of the long-run inflation objective. …

handling of cointegration restrictions. This paper extends the Bayesian analysis of structural VARs to cover cointegrated … processes with an arbitrary number of cointegrating relations and general linear restrictions on the cointegration space. A …

cointegration framework. We find significant differences between the determinants of holdings of small and large denominations as … inflation variability. Large-value banknotes seem to be therefore used to an important extent as a store of value domestically …

such as the shortterm nominal interest rate, annual inflation and output. …