exist two or no balanced paths while stationary equilibria with zero inflation exist only on a small (non-open) set of … and stability are influenced in a decisive way by fiscal and monetary parameters determining steady state inflation rates …

line with empirical evidence, the model predicts a short-term inflation-output trade-off, a liquidity effect …

We explain how the Bank of Canada's policy models capture the trade-off between output and inflation in Canada. We … inflation and provide new estimates of the trade-off using recently proposed methods. Finally, we contrast these estimates with …

containing information on real economic activity, inflation, interest rates and Divisia monetary aggregates produces the most …

. Potential output is seen as sustainable; yet experience indicates that output may be on an unsustainable path even if inflation …

economy an inflation bias arises due to the lobbying pressures of outsiders. Furthermore, it shows that if lobbying pressures … are high enough, an inflation bias cannot be avoided for any finite level of central bank independence. It also shows that …

This paper considers a sticky price model with a cash-in-advance constraint where agents forecast inflation rates with …. While average output and inflation result the same as under rational expectations, higher moments differ substantially …: output and inflation show persistence, inflation responds sluggishly to nominal disturbances, and the dynamic correlations of …