This paper investigates the relationship between the Great Moderation and two measures of inflation performance: trend … inflation and inflation volatility. Using annual data from 1970 to 2011 for a large panel of 180 developed and developing … empirical findings show that the effect of inflation volatility is positive, while the effect of trend inflation is negative …

rule that stabilizes output and inflation in an environment where endogenous boom-bust cycles in house prices can occur … borrowers are occasionally over-optimistic, the central bank should be less responsive to inflation, more responsive to output …-bust cycles in house prices, but prolongs inflation target horizons due to weak policy reactions to inflation fluctuations after …

We use a joint model of macroeconomic and term structure dynamics to estimate inflation risk premia in the United … inflation and interest rate expectations at various future horizons, as well as term structure data from both nominal and index …-linked bonds. Our results show that, in both currency areas, inflation risk premia are relatively small, positive, and increasing …

empirical inflation series in the estimation. When using CPI or PCE, we find some support for the view that the Federal Reserve …'s policy was extra easy and may have led to equilibrium indeterminacy. Instead, when measuring inflation with core PCE … that inflation in the model is measured by a single indicator. We re-formulate the artificial economy as a factor model …

wages and labor market shocks feed into the inflation process and derive monetary policy implications. Towards that aim, we …

wages and labor market shocks feed into the inflation process and derive monetary policy implications. Towards that aim, we …