This paper studies monetary policy rules in a small open economy with Inflation Targeting, incomplete pass-through and … rigid nominal wages. The paper shows that, when nominal wages are fully flexible and pass-through is low to moderate, the … stabilize nominal wages. The results of the paper suggest that, by committing to a common monetary policy in a common …

We combine an estimated monetary policy rule featuring time-varying trend inflation and stochastic coefficients with a … medium scale New Keynesian framework calibrated on the U.S. economy. We find the impact of variations in trend inflation on … counterfactual exercises suggest that the change in the Federal Reserve's policy response to inflation is likely to have been the …

This paper presents a model whose key feature is the existence of wage indexation clauses to lagged inflation. The main … important past inflation will be when explaining current inflation movements. However, a plausible (small) degree of indexation … does not explain observed US inflation autocorrelations. Besides, optimal monetary policy is computed and the optimal …

. Previous literature has highlighted the role of an economy's "structure" - such as its inflation volatility, inflation rate …, forecasts predicting how a given exchange rate movement will impact inflation at a specific point in time should take into …