This paper looks at the implications of heterogeneous beliefs for inflation dynamics. Following a monetary policy shock …, inflation peaks after output, is inertial, and can be characterized by a Hybrid Phillips Curve. It presents a novel channel … through which systematic monetary policy can affect the degree of inflation persistence. It does so by altering the effective …

changing nature of inflation dynamics. We estimate a series of VAR models for a set of six Asian emerging market economies, in … parts of inflation and output dynamics. The global shocks are procyclical with respect to the domestic components of …

An apparent disconnect has taken place between inflation and economic activity in the US over the last 25 years, with … price inflation remaining remarkably stable in spite of large fluctuations in the output gap and other measures of economic … implications for demand and supply curve slopes. Equipped with New Keynesian theory and estimated SVAR models, we decompose the …

stabilizing inflation and reducing inefficient fluctuations, which is resolved by using consumer price inflation as a state … might improve upon a strict inflation targeting. -- Product market frictions ; oligopolistic competition ; optimal monetary …

the leading shock candidates can explain fluctuations in output and hours. It concludes that we are much closer to …

determination of the central bank to leave unchanged its long-term inflation objective in the face of inflationary shocks. The … magnitude of private sector learning has been calibrated to match the volatility of US inflation expectations at long horizons …. Given such illustrative calibrations, we find that the costs of maintaining a given inflation volatility under weak …