inflation are co-breaking. We argue that the step-like development of inflation is in line with shocks and monetary policy that …% inflation was accomplished by introducing an inflation targeting regime. …

This paper provides empirical evidence of the role of spatial factors on the determination of inflation dynamics for a … representative set of tradable commodities in Chile. We present a simple model that explains inflation divergence across regions in a … inflation while macroeconomic common factors do not play an important role in this process. Existing literature had obtained the …

reputation of central banks. Thus, central banks should not try to bring inflation back to the targeted level of 2%. Rather, they …Inflation in advanced economies is low by historical standards but there is no threat of deflation. Slower economic … growth is caused by supply-side constraints rather than low inflation. Below-the-target inflation does not damage the …

Ramsey optimal policy models the persistence of inflation, output gap and federal funds rate without requiring two additional … parameters for inflation indexation and habit persistence. The number of reduced form parameters is larger with Ramsey optimal …

inflation and inflation uncertainty. Thus, we can test for state-dependence of the Calvo parameter in a straightforward way. To … that a number of shortcomings of empirical NKPC model representations in explaining inflation data may be addressed by … the relation between inflation and marginal costs are considerably reduced in the framework of our more general NKPC …

This chapter examines the concept of inflation persistence in macroeconomic theory. It begins by defining persistence … persistence from the literature on imperfect information models, learning models, and so-called “trend inflation models …

A.W. Phillips's discovery that inflation is negatively correlated with unemployment served as a …

Building on the results in Nalewaik (FEDS 2015-93), this work models wage growth and core PCE price inflation as regime … price inflation that becomes much larger after labor markets tighten beyond a certain point. The results are informative for … assessing the likelihood and risks of meeting certain inflation targets on a sustained basis …