examine the relevance of the cost channel for inflation dynamics in G7 countries. Since firms' costs of working capital … inflation responses to monetary policy shocks, and can even lead to inverse inflation responses, when the cost channel is …

In recent years, inflation in the euro area has failed to decelerate decisively while cyclical slack built up in the … analysis conducted on two decades of quarterly data covering 17 countries yields a yes on both counts. First, inflation is …

In this paper we propose a straightforward method to derive a non-accelerating inflation capacity utilisation rate … adjustments. The non-accelerating inflation capacity utilisation rate is then defined as the rate where a firm feels no price …

Inflation in the euro area has been falling since mid-2013, turned negative at the end of 2014 and remained below … by means of sign restrictions, to inflation and economic activity. Shocks to oil supply do not tell the full story about … contractionary. A country analysis confirms that the negative effects of oil supply and monetary policy shocks on inflation was …

-price changes and the extent to which the fraction of price changes increases with inflation in the U.S. time-series. Though the …

interest rates lead to changes to inflation in the opposite direction. I conclude that this is how credit crunches and monetary … tightening reduce inflation. I simulate different monetary policy through a variable inflation target. Wild swings in the target … kill the persistence in inflation, which may explain the absence of persistence under the Gold Standard. A stable target …

Inflation (PCCI), a measure of underlying inflation in the euro area. The PCCI reflects the view that underlying inflation … component of inflation. Methodologically, it relies on a generalised dynamic factor model estimated on a large set of … disaggregated HICP inflation rates for 12 euro area countries. For each individual inflation rate, we estimate a low …