this context, the inflation targeting parameter should be higher than one for determinacy of rational expectations … and liquid bonds, the Taylor principle holds conditional to the output and inflation coefficients in the Taylor rule …

We empirically characterize episodes of large inflation surges that have been observed worldwide in the last three … decades. We document four facts. (1) Inflation surges tend to be persistent, with the duration of disinflation exceeding that … of the initial inflation increase. (2) Surges are initially unexpected but followed by a gradual catch-up of average …

variety of instruments to influence inflation and output, including fiscal policy, bailouts and exchange rates. Solving the … correlation among output shocks. Our results suggest that governments do lean against inflation shocks, but not output shocks …

advanced economies and emerging markets to quantify the effects of fiscal tightening on inflation expectations. We find that … fiscal consolidation announcements reduce inflation expectations over the medium-term (three and five-years ahead), but not …" about expected future inflation at longer horizons. The inflation anchoring role of consolidation announcements is enhanced …