inflation, which makes it largely susceptible to shocks. Second, a high integration of macroeconomic variables, in the long term … well as NEER but not EXR. This suggests that the presence of inflation most likely exposes these economies to external …. The study advocates that governments and policymakers should deploy efficient inflation-targeting monetary policies to …

Empirical evidence suggests that considerable differentials in inflation rates exist across households. This paper … investigates how central banks should react to household inflation heterogeneity in a tractable New Keynesian model. We include two … households that differ in their consumer price inflation rates after adverse shocks. The central bank reacts to either an average …

population growth has lowered both the natural rate and inflation by about 0.4 percentage points in recent decades. …