We specify an empirical model of US inflation which has the dynamics of wage and price setting at its core. In the … studies of pandemic-era inflation have confirmed that shocks to energy prices were important, but have not included imported … inflation more broadly. Estimation and simulation results indicate that wage growth was strongly affected early in the pandemic …

We specify an empirical model of US inflation which has the dynamics of wage and price setting at its core. In the … studies of pandemic-era inflation have confirmed that shocks to energy prices were important, but have not included imported … inflation more broadly. Estimation and simulation results indicate that wage growth was strongly affected early in the pandemic …

, through the New Keynesian Phillips Curve, lower inflation. While the proposed model does a good job at matching the observed …

instability or inflation instability -- could cause policymakers to exercise restraint in their response to cyclical weakness …

Economists have long emphasized the importance of expectations in determining macroeconomic outcomes Yet there has been … almost no recent effort to model actual empirical expectations data; instead macroeconomists usually simply assume … expectations are rational This paper shows that while empirical household expectations are not rational in the usual sense …

explaining the deviations of household inflation and unemployment expectations from the rational expectations benchmark …Since the foundational work of Keynes (1936) macroeconomists have emphasized the importance of agents' expectations in … empirical expectations data instead assuming all agents' expectations are rational This paper takes up the challenge of modeling …

last three decades. Are lagged dependent variables - traditionally interpreted as proxies for inflation expectations - just … expectations in the inflation process; if indeed inflation is a global phenomenon, the task of controlling inflation expectations … inflation expectations. Are the actions of central banks nothing more than a sideshow? …

keep a very close eye on money supply if it wants to prevent consumer and/or asset price inflation. …We turn our attention to the role of money for determining nominal magnitudes. Using US data, we find that the … aggregate “nominal output plus and stock market capitalisation” is closely related to the money stock, lending support to one of …