This paper shows how endogeneous inflation inertia is generated by a simple modificaton of the quadratic adjustment … cost structure faced by economic agents. We derive the pertinent inflation relationships based on purely nominal rigidities … replicate empirical responses to an interest rate shock. -- Inflation Dynamics ; New Keynesian Phillips Curve; Business …

below the pre-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than … anticipated, suggesting a breakdown of the relation between inflation and activity. To examine the first, we look at 122 … find that the effect of unemployment on inflation, for given expected inflation, decreased until the early 1990s but has …

some services. We also document a decrease in sectoral inflation persistence, suggesting an increase in the weight of the … forward-looking inflation expectation component and a decrease in the weight of the backward-looking component …

Ever since the end of the Great Recession, the U.S. economy has experienced a period of mild inflation, which … contradicts with the output-inflation relationship depicted by a traditional Phillips curve. This paper examines how the permanent … output loss during the Great Recession has affected the ability of the Phillips curve to explain U.S. inflation dynamics. We …

-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a … breakdown of the relation between inflation and activity. To examine the first, we look at 122 recessions over the past 50 years … unemployment on inflation,for given expected inflation, decreased until the early 1990s, but has remained roughly stable since then …

Inflation and unemployment rate were largely disconnected between 2000 and 2019 in advanced economies. We decompose … core inflation into two parts based on the cyclical sensitivity of CPI components and document several salient facts: (i … inflation and unemployment rate. The approach has potential to help understand forces shaping price pressures during the …

. This paper investigates the transmission of external shocks to these economies via their impact on inflation and inflation … volatility. The empirical results suggest that in both Indonesia and Thailand, inflation and inflation volatility are more … sensitive to external shocks relative to domestic shocks, consistent with the globalization hypothesis. Inflation and inflation …

This paper surveys and examines the sources of fluctuations in inflation and output in Turkey. Using a dynamic open … indicate that inflation is driven by monetary and real demand disturbances while output is mainly driven by aggregate supply … disturbances. The historical decomposition shows that a substantial portion of inflation is aggregate demand-driven core inflation …

Although economic theory suggests that inflation should not have any significant influence on real housing prices and … activity, inflation variations are the main drivers of housing price variability (Tsataronis and Zhu, 2004) and increases in … inflation have preceded housing and economic recessions. The combination of the tilt effect (Lessard and Modigliani, 1975) and …