The dominant view of inflation holds that it is macroeconomic in origin and must always be tackled with macroeconomic … tightening. In contrast, we argue that the US COVID-19 inflation is predominantly a sellers' inflation that derives from … trying to fend off real wage declines in the conflict stage. We argue that such sellers' inflation generates a general price …

firms' market power in explaining inflation, and in favor of the "sellers' inflation" hypothesis (Weber and Wasner (2023 …

Empirical evidence suggests that considerable differentials in inflation rates exist across households. This paper … investigates how central banks should react to household inflation heterogeneity in a tractable New Keynesian model. We include two … households that differ in their consumer price inflation rates after adverse shocks. The central bank reacts to either an average …

current inflation rates and adaptive expectations concerning the inflation climate in which the economy operates. The model … correction terms, and indirectly of income distribution, in the dynamics of wage and price inflation in the U.S. and the euro …

examine the relevance of the cost channel for inflation dynamics in G7 countries. Since firms' costs of working capital … inflation responses to monetary policy shocks, and can even lead to inverse inflation responses, when the cost channel is …

to match past inflation. However, the present paper proposes a much larger effect by using the job finding rate as the …

interest rates lead to changes to inflation in the opposite direction. I conclude that this is how credit crunches and monetary … tightening reduce inflation. I simulate different monetary policy through a variable inflation target. Wild swings in the target … kill the persistence in inflation, which may explain the absence of persistence under the Gold Standard. A stable target …