There has been mounting evidence that the inflation process has been changing. Inflation is now much lower and much … more effective. There is no doubt in our mind that this explanation goes a long way towards explaining the better inflation …. We argue that prevailing models of inflation are too country-centric, in the sense that they fail to take sufficient …

this model to examine how the welfare costs and benefits of disinflation vary with the initial inflation rate and the speed …

How does inflation affect the investment decisions of financially constrained firms in the presence of corporate … taxation? Inflation interacts with corporate taxation via the deductibility of i) capital expenditures and ii) interest … payments on debt. Through the first channel, inflation increases firms' taxable profits and further distorts their investment …

This chapter aims at assessing the long-run determinants and the short-run dynamics of inflation in each country … cointegrating VAR approach, which allows for a structural long-run analysis of inflation determinants along with an accurate … inflation differ in the countries belonging to the Euro Area, but also that cost-push factors have a considerable role in …

data determine two inflation regimes and find that they are characterized by high and low inflation volatility. We then … exhibit a more substantial and more persistent effect on downstream prices during periods of elevated inflation volatility … effective in State 2. Exogenously differentiating regimes by the level of inflation or the shock size does not reveal state …

Inflation persistence in U.S. data can be characterized by a vector autocorrelation function relating inflation and … central bank using an interest rate target can account for inflation persistence. There are no sticky prices and no liquidity … effects. Agents' decisions in a period are taken only after all shocks are observed. Monetary policy induces inflation …

The inflation targeting policy, which is adopted in a lot of countries in recent years, has been introduced with a band … target in most countries. However, in the many theoretical analysis, the target of the inflation rate is assumed to be a … few. In this paper, to treat the above-problem, we make the inflation band targeting model which is based on Barro and …

Assessing the effects of monetary policy and wage bargaining on employment and inflation in the European Monetary Union … (EMU), in the first step a Post-Keynesian competitive claims model of inflation with endogenous money is developed. In this … rising inflation. Economic performance will improve if the ECB abandons its asymmetric monetary strategy. This may be …