This paper proposes a dynamic stochastic general equilibrium model that endoge­nously generates inflation persistence … contrast with traditional sticky price models, the framework yields inflation inertia, a delayed effect of monetary policy … shocks on inflation, and the observed "reverse dynamic" correlation between inflation and economic activity …

inflation. We introduce a small idiosyncratic component in firms' marginal costs and let the economywide average marginal cost …

cyclical movements in Treasury bond premia. Downward nominal rigidities create state-dependence in output and inflation … dynamics: a higher level of inflation makes prices more flexible, leading output and inflation to be more volatile, and bonds … to become more risky. The model matches well the relation between the level of inflation and a number of salient macro …

inflation expectations diminish, holding investment fixed. In the data stock prices and investment correlate poorly precisely … when stock prices and inflation move in opposite directions. Therefore, this New Keynesian Q (NKQ) theory can rationalize …. Formal tests cannot reject the hypothesis that stock prices and a linear combination of investment and inflation move on the …

We estimate the New Keynesian Phillips Curve for the USA from 1997 to 2019 using expected inflation from financial … instruments. We use a spliced series comprised of the TIPS spread and inflation swaps. Empirical tests find higher coefficients on … backward-looking inflation than forward-looking, except for the 2009 – 2015 period of zero lower bound Fed Funds rate target …

cyclical movements in Treasury bond premia. Downward nominal rigidities create state-dependence in output and inflation … dynamics: a higher level of inflation makes prices more flexible, leading output and inflation to be more volatile, and bonds … to become more risky. The model matches well the relation between the level of inflation and a number of salient macro …

The US and other advanced countries suffered bursts of severe inflation in 2021 and the first half of 2022, followed by … declines of inflation later in 2022, in some countries. In times of high volatility of price determinants--cost and … productivity--inflation can jump upward and fall downward at high speed, contrary to the uniformly sticky behavior associated with …

effects of uncertainty shocks on inflation. We find the response of inflation to be statistically insignificant until mid …

Using the statistical technique of fuzzy clustering, regimes of inflation and unemployment are explored for the United … inflation/unemployment space. There is considerable similarity across the countries in both the regimes themselves and in the … timings of the transitions between regimes. However, the typical rates of inflation and unemployment experienced in the …

, inflation and unemployment, we detect a wrong sign in the response of inflation to contractionary monetary policy shocks … 1999-2019, when the Federal Funds Rate and the Euro-Dollar exchange rate are added to the VAR model inflation shows … significant unemployment inflation trade-off emerges. These conclusions are confirmed by using industrial production instead of …