the last decade. Using stylised models of the economies of the US, Euro area, UK and Japan, we argue that economic … stability has been fostered by improved monetary policy and by associated changes in the behaviour of inflation, which has …

In this paper we estimate a small macroeconometric model of the United States, the euro area and Japan with rational … euro area and Japanese inflation dynamics are best explained by Taylor-style contracts, while Buiter …-Jewitt/Fuhrer-Moore contracts perform somewhat better in fitting U.S. inflation dynamics. We are unable to fit Calvo-style contracts to inflation …