chartalist, respectively), the rate of wage inflation depends on either unemployment or the wage-setting policies of the … inflation affects aggregate demand through its impact on the value of assets and debts. Bank rates depend on an endogenous …

This paper studies how strategic complementarities generated by real rigidities affect the propagation of uncertainty … uncertainty shocks are cardinally different. In particular, firm-specific inputs strengthen the contractionary impact of … uncertainty shocks by amplifying the upward pricing channel. With the Kimbal aggregator, on the contrary, firms bias their pricing …

In the paper we investigate, which shocks drive inflation in small open economies. We proceed in two steps. First, we … variables. Our results show that in two out of three analyzed countries the fluctuations of inflation are to the largest extent … inflation variability while for the third country the contribution of the commodity shock dominates over the output gap in …

precautionary saving is strong enough, a rise in uncertainty leads to i) a drop in inflation; ii) amplified negative responses of … to uncertainty shocks. Empirically, uncertainty shocks i) generate deflationary pressure; ii) have considerably negative … jointly attain these results. Uncertainty shocks induce households' precautionary saving and firms' precautionary pricing …

effects of uncertainty shocks on inflation. We find the response of inflation to be statistically insignificant until mid …-to-late 1990s and negative thereafter. Our findings suggest that uncertainty shocks do not propagate like aggregate supply shocks …

. 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 …

inflation rates and a decline in economic activity. Against this economic backdrop, this paper aims to address the strained …