In this paper, we examine the extent to which monetary policy should respond to movements in sectoral inflation rates … price index (CPI). We calibrate the model for each sector using the UK CPI microdata. We find that a policy rule that allows … for different responses to inflation in different sectors outperforms a rule which just targets aggregate CPI, as does a …

This paper empirically compares sticky-price and sticky-information Phillips curves considering inflation dynamics in … six countries (US, UK, Germany, France, Canada, and Japan). We evaluate the models‘ abilities to match empirical second … moments of inflation. Under baseline calibrations, the two models perform similarly in almost all countries. Under estimated …

This paper empirically compares sticky-price and sticky-information Phillips curves considering inflation dynamics in … six countries (US, UK, Germany, France, Canada, and Japan). We evaluate the models‘ abilities to match empirical second … moments of inflation. Under baseline calibrations, the two models perform similarly in almost all countries. Under estimated …

inflation series of the euro area CPI translates into the slow adjustment of euro area aggregate inflation. We first estimate a … dynamic factor model for 404 inflation sub-indices of the euro area CPI. This allows to decompose the dynamics of inflation … overall variance of the 404 disaggregate inflation series, is the main driver of aggregate dynamics. In addition, the …

inflation series of the euro area CPI translates into the slow adjustment of euro area aggregate inflation. We first estimate a … dynamic factor model for 404 inflation sub-indices of the euro area CPI. This allows to decompose the dynamics of inflation … the overall variance of the 404 disaggregate inflation series, is the main driver of aggregate dynamics. In addition, the …