This paper examines the role of inflation expectations in Solomon Islands, a Pacific Island Country, using the Hybrid … matter for inflation. Fuel prices and output gap are important indicators of current inflation. The study highlights key … through effect onto domestic prices. Studies on the role of inflation expectations in small, open, economies of the Pacific …

This paper discusses the likely evolution of U.S. inflation in the near and medium term on the basis of (1) past U ….S. experience with very low levels of inflation, (2) the most recent Japanese experience with deflation, and (3) recent U.S. micro … evidence on downward nominal wage rigidity. Our findings question the view that stable long-run inflation expectations and …

A regime shift towards increased inflation expectations is credited with jumpstarting the recovery from the Great … Depression in the United States. Germany experienced a recovery as fast and strong in the 1930s. What role did inflation … expectations play at the start of this remarkable economic upturn? To answer this question, we study inflation expectations in …

currency rationing. This in turn ignites inflation due to external bottlenecks since many sectors face supply constraints as … growing distributive conflict and fuels inflation further, as workers oppose to the lowering of real wages. Moreover, the … parallel market devaluation-inflation spiral, which threatens to turn into hyperinflation. Nevertheless, we argue that …

rules when trend inflation is non-zero. We find that when trend inflation is high, the REE is likely to be expectationally …) introduced in the Taylor rule. Our results suggest that a high macroeconomic volatility during the period of high trend inflation …

This paper contrasts empirically four leading models of inflation dynamics - the accelerationist Phillips curve (APC … inflation dynamics. …

Recent survey evidence reveals misaligned inflation expectations among economic agents. While households associate … higher expected inflation with lower output growth, professional forecasters often link higher future inflation to stronger … from equilibrium outcomes (i.e., output and inflation) as opposed to the inattentive private sector. Survey data help …

Central banks in most advanced economies have reacted similarly to the increase in inflation that started in 2021. They … initially looked through the rising inflation by leaving monetary policy relatively unchanged. Then, after inflation continued … aiming to anchor drifting inflation expectations. Why might central banks want to look through supply-driven inflation …