declines reduce their investment in securities more intensely, especially in securities with large valuation gains. These new …

regimes: (1) very low inflation or deflation, and (2) high inflation. Specifically, we determine the information content of … high asset prices more often signal high inflation than low inflation/deflation. However, in some countries, high asset … prices and low bond yields are a significant indicator of low inflation or deflation as well. The transmission time of …

estate, as well as the costs of public goods to develop alternative inflation measures in Germany since the introduction of … the euro. Real economic growth as well as median wage developments are reexamined in light of the alternative inflation …

explain the persistence of inflation. However, both of these theories are inconsistent with the micro data on prices. In this … difference between the GTE and its popular alternatives in terms of inflation persistence, a difference arises when it comes to …

In this paper we present supporting evidence of the existence of heterogeneity in inflation dynamics across euro area … significant inertial (backward looking) behavior in inflation in four of them, while inflation in Germany has a dominant forward … looking component. We then present an optimizing agent model for the area emphasizing the heterogeneity in inflation …

Several empirical studies have suggested that the Bundesbank has pursued inflation targets rather than monetary targets …, the significance of this coefficient drops to 10 percent. By contrast, deviations of the inflation rate from the inflation …. This result holds regardless of whether the lagged or the currently expected inflation rate is employed. The results are …

these trends requires targeting a significantly positive inflation target. Relative price trends shift the optimal in ation … account in the present paper may push up the optimal inflation targets further. The welfare costs associated with targeting … zero inflation turn out to be substantial and range between 2.1% and 4.5% of consumption in present-value terms. …