policy analysis, researchers should use a menu cost model like ours or at least a third, theory-based shortcut: set the Calvo …

a TFP shock, generate marked inflation persistence. In contrast, an indirect tax and an oil price shock appear much less … persistent and a social security shock generates less inflation persistence in the majority of the countries (although some weak …This paper analyses the response of inflation in the euro area to five macroeconomic shocks through the use of results …

of the New Keynesian Phillips Curve (NKPC) is that they fail to capture the extent of inflation inertia in the data. In …

of the New Keynesian Phillips Curve (NKPC) is that they fail to capture the extent of inflation inertia in the data. In …

cost channel theory. Taken together, the results of both panel data and time series analyses imply that the ECB’s low … interest rate policy has worked better for boosting inflation in Italy and Spain than in Germany. …

alternative monetary policy strategies. We start with the relationship between output and inflation and investigate the fit of the … reject the nominal contracting model in favor of the relative contracting model which induces more inflation persistence, we … in countries which transitioned out of a high inflation regime such as France and Italy. We close the model by estimating …

wisdom about the effects of monetary policy shock. …

that cost-push shocks play a prominent role in understanding historical changes in inflation-gap persistence …

persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation … cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions … employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to …