Low and unresponsive inflation has been termed a “puzzle.” The paper describes a formula for which these conditions … variability of forward long-term inflation. Its U.S. inflation forecasts are comparable to recognized leaders in accuracy with … potential applicability to international economies as well.Inflation Elasticity, the responsiveness of inflation to monetary …

general validity: (a) deficits lead to inflation and stopping inflation requires elimination of deficits; (b) a major effect … of inflation is a large shift of the tax burden from capital to labor; and (c) shocks to labor supply, such as massive …

We empirically characterize episodes of large inflation surges that have been observed worldwide in the last three … decades. We document four facts. (1) Inflation following surges tends to be persistent, with the duration of disinflation … exceeding that of the initial inflation increase. (2) Surges are initially unexpected but followed by a gradual catch-up of …

prices and the path of inflation, potentially with significant effects on real variables in settings where the classical … aggregate output and employment -- and for the path of inflation, but not the cumulative amount of inflation overall. The … inflation at a lower cost to employment and output than the trade-off incurred by raising interest rates or by raising taxes …

inflation in these two countries. Interestingly, in contrast with previous research, we find these policies had no impact on …, and repudiated much of its outstanding government debt causing renewed inflation and a loss of significant consumer wealth …

This paper provides some empirical estimates on how tightly is it feasible to control inflation in a very small open … inflation and output variability that are achievable under a range of alternative monetary policy rules. These frontiers … illustrate that inflation stabilization is more challenging in Iceland than in other industrial countries primarily because of …

This paper evaluates the link between central bank independence and inflation for the case of Colombia. It develops a … theoretical framework concerning central bank independence and inflation. It concludes that central bank independence is an … important feature for reducing inflation and partially solvind the problem of time inconsistency, assuming the existence of a …

This paper tries to explain why high inflation levels persist during long periods of time, in several countries … affected by chronic inflation, without the necessary corrective measures being implemented. Political models of conflict … results of a tobit model estimated over a panel of 10 countries affected by chronic inflation and covering 43 years of …

linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due … properties of interest-rate rules whereby the central bank responds to a measure of past inflation. The consensus view that has … inflation are likely to ensure global stability provided that the coefficient on lagged interest rates is greater than unity …

and lagged relationships between the rates of inflation, unemployment, and change in labour force. For France, several … relationships were estimated eight years ago. The change rate of labour force was used as a driving force of inflation and … estimated with eight new readings obtained since 2004. The rate of CPI inflation is predicted with RMSFE=1.5% per year. For the …