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 …

(like professional forecasters) have responded to the COVID-19 pandemic by lowering their one-year-ahead inflation … expectations. These responses stand in stark contrast to that of household inflation expectations (as measured by the University of … Michigan or the New York Fed). Indeed, firms' one-year-ahead inflation expectations fell precipitously (to a series low …

Using the Federal Reserve Bank of Atlanta's Business Inflation Expectations (BIE) survey, which has been continuously …

, 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 …

across the sample. Evidence in favour of a diminishing effect of oil price shocks on the output and inflation is found from … in the last part of the 1990s and, especially, for the CPI inflation in the 2000s. The most outstanding result is that … the oil price movements could explain at least some of the recent inflation, the main difference between these outcomes …

model the U.S. inflation rate via the Sorenson-Alspach recursions. Even after removing state-contingent heteroskedasticity … accounts for outliers and level shifts better, provides tighter estimates of trend inflation, and gives more realistic …

We investigate whether fluctuations in U.S. inflation rates are better described by infrequently occurring large shocks … U.S. inflation rates, recognizing the distinction between frequent small shocks and infrequent large shocks does not …

In order to explain the joint fluctuations of output, inflation and the labor market, this paper first develops a … helps to explain the sluggishness of inflation and the persistence of output after a monetary policy shock. The ability of … the model to account for the joint dynamics of output and inflation rely on its ability to explain the dynamics in the …

Inflation (1948:I-1979:II) to the Great Moderation (1984:I-2006:II). Reminiscent of the evidence in Shapiro and Watson (1988 … policy and smaller shocks explain almost evenly the large decline of the variability in inflation …

marginal costs with respect to output and thus help to account for the observed inertia in inflation …