aggregate demand still can cause significant inflation. …

This paper shows how endogeneous inflation inertia is generated by a simple modificaton of the quadratic adjustment … cost structure faced by economic agents. We derive the pertinent inflation relationships based on purely nominal rigidities … replicate empirical responses to an interest rate shock. -- Inflation Dynamics ; New Keynesian Phillips Curve; Business …

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 …

output and inflation, as observed in a vectorautoregression analysis. In contrast to backward indexation to past inflation …, which is often assumed in the literature, sticky information leads to a hump-shaped response in the inflation of flexibly …

Since the early 1980s, the United States economy has changed in some important ways: Inflation now rises considerably … less when unemployment falls and the volatility of output and inflation have fallen sharply. This paper examines whether … volatility of monetary policy reaction functions can account for most or all of the change in the inflation …

A vast literature has documented how US inflation persistence has fallen in recent decades, but this finding is … difficult to explain in monetary models. Using survey data on inflation expectations, I document a positive co-movement between … that inflation is more persistent in periods of greater forecast sluggishness. My results suggest that changes in firm …

The recently observed disconnect between inflation and economic activity can be explained by the interplay between the … offset the effect of lower factor costs and induce only moderate inflation responses. The Phillips curve is hence flat at the …