This paper offers a reappraisal of the inflation-unemployment tradeoff, based on ?frictional growth,? describing the … effects. Although our theory contains no money illusion, no permanent nominal rigidities, and no departure from rational … expectations, there is a long-run inflation-unemployment tradeoff. Our empirical analysis suggests that this Phillips curve may be …

This paper presents one of the inflation forecasting models used by the Magyar Nemzeti Bank in its recent inflation … process whereby costs gradually pass through into consumer prices. It is the empirical estimation of this slow cost-price pass …-through that provides the uniqueness of the model in terms of economic and econometric theory. …

study, quantifies the size and dynamics of two such premiums: one is related to the inflation uncertainty in a nominal risk …This paper sets out to quantify, with the use of a consumption-based CAMP, the risk premiums inherent in the Israeli …-free bond, and the other is related to the inflation uncertainty in an index-linked bond, caused by indexation lag. …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation … within pre-specified bounds. We develop formal tools of risk management that may be used to quantify and forecast the risks … of failing to attain that objective. We illustrate the use of these risk measures in practice. First, we show how to …

available from currency speculation. We apply a general no--arbitrage based model to decompose the risk premium into inflation … inflation risk or the relationship between inflation and real risks. Our results imply that for monetary policy to have … significant effects on the risk--premia for currency speculation, monetary policy must have little effect on inflation risk, the …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation … within pre-specified bounds. We develop formal tools of risk management that may be used to quantify and forecast the risks … of failing to attain that objective. We illustrate the use of these risk measures in practice. First, we show how to …

view that monetary policy easing induces greater risk-taking by banks but also shows that the relationship between real … interest rates and banking risk is more complex. Ultimately, it depends on how much skin in the game banks have. The central …