determinant of the monetary transmission mechanism, namely the degree of persistence characterising the inflation process. The … types of staggered contracts specifications which induce quite different degrees of inflation persistence. The paper shows … that inflation persistence is high when uncertainty about the prevailing degree of inflation persistence is pervasive …

The rise in inflation in 2021-22 sparked a growing literature and debate over the causes of the surge as well as the … near- and medium-term path for inflation. This review offers three key messages. First, the exceptional nature of shocks … resulting from the COVID-19 pandemic and geopolitical events drove the surge in inflation and the initial underestimation by …

qualitative and quantitative information on subsequent inflation. The usefulness of monetary analysis is contrasted to weaknesses … in modeling monetary policy and inflation with respectively short-term interest rates and real activity measures. The … analysis sheds light on the recent change in inflation volatility and persistence as well as on the Phillips curve flattening …

. In particular, the replacement of the Bundesbank, directly targeting German inflation, by a European Central Bank (ECB …) targeting European inflation will remove a major institutional support of wage restraint in Germany. The consequences of this … for EMU are worked out under two scenarios, that inflation expectations will be generated by ECB monetary policy and that …

Headline inflation in the euro area jumped to more than three percent in the summer after years of relatively low … inflation rates well below the target of close to but below two percent set by the ECB until July 2021. One of the main reasons … for the rise in inflation is the increase in energy prices since the beginning of 2021. However, there are further …

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 …

After almost four decades of price stability, inflation has recently approached historical highs. Initially driven by … global energy and food price increases, the magnitude of the surge in inflation caught central banks and markets by surprise … monetary policy tightening, inflation upside risks are large. How can central banks restore control – and with it their own …