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 …

Empirical evidence suggests that considerable differentials in inflation rates exist across households. This paper … investigates how central banks should react to household inflation heterogeneity in a tractable New Keynesian model. We include two … households that differ in their consumer price inflation rates after adverse shocks. The central bank reacts to either an average …

(M1, M3-M1 or credit) and the underlying state of the economy (asset price boom-bust, business cycle, inflation cycle … inflation differ over time. We show that the impact varies considerably over time, depends on the source of increased liquidity …, credit cycle and monetary policy stance) …

Global inflation has risen sharply from its lows in mid-2020, on rebounding global demand, supply bottlenecks, and … soaring food and energy prices, especially since the Russian Federation's invasion of Ukraine. Markets expect inflation to … developments, the risk of stagflation-a combination of high inflation and sluggish growth-has risen. The recovery from the …

firms) and a measure of wage entitlement are critical to fit the dynamic responses of hours, wages and inflation to various … significant fall of inflation and nominal wage growth in response to a neutral technology shock …

In order to explain the joint fluctuations of output, inflation and the labor market, this paper first develops a … significantly lower elasticity of marginal costs with respect to output. This helps to explain the sluggishness of inflation and the … inflation relies on its ability to explain the dynamics of the labor market …

population growth has lowered both the natural rate and inflation by about 0.4 percentage points in recent decades. …

financial conditions have some inflation forecasting ability over the monetary policy relevant two to three-year horizon during …