linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due … properties of interest-rate rules whereby the central bank responds to a measure of past inflation. The consensus view that has … inflation are likely to ensure global stability provided that the coefficient on lagged interest rates is greater than unity. …

Inflation (1948:I-1979:II) to the Great Moderation (1984:I-2006:II). Reminiscent of the evidence in Shapiro and Watson (1988 … policy and smaller shocks explain almost evenly the large decline of the variability in inflation …

We propose a simple, model-free way to measure price selection and its impact on inflation. Price selection exists when … selection, increases (decreases) in inflation can be amplified because adjusting prices tend to originate from levels far below … for around 36% of inflation variance in the United Kingdom and the United States, and 28% in Canada. Price selection is …

This paper shows how endogeneous inflation inertia is generated by a simple modificaton of the quadratic adjustment … cost structure faced by economic agents. We derive the pertinent inflation relationships based on purely nominal rigidities … replicate empirical responses to an interest rate shock. -- Inflation Dynamics ; New Keynesian Phillips Curve; Business …

result is that the model is able to generate persistent responses in output, inflation, and total labor input to both neutral …

In order to explain the joint fluctuations of output, inflation and the labor market, this paper first develops a … significantly lower elasticity of marginal costs with respect to output. This helps to explain the sluggishness of inflation and the … inflation relies on its ability to explain the dynamics of the labor market …

Inflation and unemployment rate were largely disconnected between 2000 and 2019 in advanced economies. We decompose … core inflation into two parts based on the cyclical sensitivity of CPI components and document several salient facts: (i … inflation and unemployment rate. The approach has potential to help understand forces shaping price pressures during the …

-kinked demand schedule for goods produced by firms. Our model can jointly account for the modest decline in inflation during the … Great Recession and the surge in inflation post-COVID-19. Because our model implies a stronger transmission of shocks when … inflation is high, it generates conditional heteroskedasticity in inflation and inflation risk. Hence, our model can generate …