Foreign price shocks have significant effects on functional income distribution and on inflation inequality. By ….g. food prices for low-wage workers). Based on the conflicting-claims inflation literature, we propose a new extension to this … with an inflation-targeting regime. We investigate the impacts of foreign price shocks on income and inflation inequality …

paper arrives at a “structuralist inflation targeting agenda”. Based on a proper conception of inflation dynamics, this …This paper develops a model of inflation in an open economy. The model permits analysis of the susceptibility of open … involves “getting inflation targeting right” rather than either accepting mainstream inflation targeting prescriptions or …

model indexation regulates the sources of inflation persistence. When indexation is zero, the inflation gap is purely … forward- looking and inflation persistence depends only on the level of trend inflation, while full indexation makes the … inflation gap persistent and it eliminates the effects of trend inflation. We show that in the former case the optimal policy is …

responds to inflation and output volatility, especially during economic crises. This framework offers a promising alternative …

Long-term bond yields contain a risk-premium, an important part of which is compensation for inflation risks. The …

-specific output gaps and inflation rates, we find that performance of the optimal policy rule can be closely approximated by a very … simple rule that targets a weighted average of aggregate wage and price inflation rates. In contrast, some commonly …-prescribed policy rules (such as strict price inflation targeting and Taylor's rule) perform very poorly in terms of social welfare …

inflation targeting. The growth performance of this regime is compared to the one resulting from real exchange rate targets …. Inflation targeting is shown to hurt growth and employment performance. Real exchange rate targeting, on the other hand, allows … placing the economy on a higher growth path, but the trilemma hurts inflation performance. This problem may be mitigated by …

India formally adopted flexible inflation targeting (FIT) in June 2016 to place price stability, defined in terms of a … target CPI inflation, as the primary objective of monetary policy. In this context, the paper draws on Indian macroeconomic …

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 …

I investigate the welfare maximizing steady-state inflation rate in a heterogeneous-agent New Keynesian model with … very significant impact on the economy when the inflation target is low. Considering the price dispersion due to sticky … prices, zero lower bound, and declining trend productivity, I find that the optimal inflation target should be much higher …