It can be shown that inflation expectations and associated forecast errors are characterized by a high degree of persistence. One reason may be that forecasters cannot directly observe the inflation target pursued by the central bank and, hence, face a complicated forecasting problem. In...

World Economy: Slowdown in all major economic regions - Western Europe: Bleak economic climate - North America: Economic climate clouded - Eastern Europe: Expectations considerably less positive - CIS: Economic climate sharply deteriorated - Asia: Economic cooling - Oceania: Favourable economic...

World Economic Climate: World Economic Climate improves - Economic Expectations: Economic expectations predominantly positive - Inflation: Price increase expected to slow down - Currencies: Moderate rise of US dollar expected - Interest Rates: Sligthly higher long-term interest rates expected -...

World Economic Climate: World Economic Climate remains almost unchanged - Economic Expectations: Economic expectations barely improved - Inflation:Low inflation expectations - Currencies: US dollar expected to rise - Interest Rates: Interest rates look set to remain stable - Special Topic: Bank...

This paper explores whether the cost channel solves the price puzzle. We set-up a New Keynesian DSGE model and estimate it for the euro area by adopting a minimum distance approach. Our findings suggest that - under certain parameter restrictions which are not rejected by the data - the cost...

This paper explores whether the cost channel solves the price puzzle. We set-up a New Keynesian DSGE model and estimate it for the euro area by adopting a minimum distance approach. Our findings suggest that - under certain parameter restrictions which are not rejected by the data - the cost...

Any measure of unobserved inflation uncertainty relies on specific assumptions which are most likely not fulfilled completely. This calls into question whether an individual measure delivers a reliable signal. To reduce idiosyncratic measurement error, we propose using common information...

Im Zuge der Gründung der Europäischen Währungsunion übernahm die Europäische Zentralbank im Januar 1999 die Verantwortung für eine einheitliche Geldpolitik im Euroraum. Während damit Nominalzinsunterschiede innerhalb der EWU praktisch der Vergangenheit angehören, existieren weiterhin...