containing information on real economic activity, inflation, interest rates and Divisia monetary aggregates produces the most …

response to a monetary contraction, firms facing costs of decreasing regular prices post more sales, and households spend more …

. Less attentive firms adjust prices slowly in response to monetary innovations, which yields non-neutrality. As average …

Elevated inflation can threaten the credibility of central banks and increase the risk that inflation expectations do … not remain anchored. Wage-price spirals might develop in such an environment, and high inflation could become entrenched …-varying propagation of inflationary shocks that improves forecasting performance of inflation and wage growth. Central bank credibility is …