show that this framework is able to explain the positive relationship between the steady state level of inflation and … business cycle inflation volatility observable in the data. In addition, we contribute to the theoretical literature by … prove that the monotonic relationship between steady state inflation level and business cycle inflation volatility holds …

positive at the onset of the episode, through promising higher inflation rates in future periods. We embed our theory into a … commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and …

bankers to explain their monetary policy decisions in detail and for them to publish inflation forecasts. This leads to the … question of how central bank transparency is entangled with price stability and inflation volatility. A plethora of studies … transparency leads to lower inflation, others concluded that openness of central banks results in higher prices. Conversely, there …

In a recent paper, Atkeson and Kehoe (2004) demonstrated the lack of a robust empirical relationship between inflation … relationship by allowing for inflation and growth to have a nonlinear specification dependent on inflation levels. In particular …, we allow for the possibility that high inflation is negatively correlated with growth, while a positive relationship …

This paper studies the importance of money for inflation in the euro area. An inflation …

We develop a theoretical model that features a business cycle-dependent relation between out- put, price inflation and … inflation expectations, augmenting the model by Svensson (1997) with a nonlinear Phillips curve that reflects the rationale … underlying the capacity constraint theory (Macklem (1997)). The theoretical model motivates our empirical assessment for the euro …

purposes, and the theory predicts that conditional on such shocks output growth should be more volatile than inflation in …We address this question by examining the conditional dynamics of inflation and output growth in response to markup … shocks for 14 industrialized countries. Markup shocks create a trade-off between output gap and inflation stabilization …

rule is optimal despite the presence of collection costs. When these conditions are not satisfied, the optimal inflation …

positive at the onset of the episode, through promising higher inflation rates in future periods. We embed our theory into a … commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and …

This paper provides empirical evidence of the role of spatial factors on the determination of inflation dynamics for a … representative set of tradable commodities in Chile. We present a simple model that explains inflation divergence across regions in a … inflation while macroeconomic common factors do not play an important role in this process. Existing literature had obtained the …