This paper applies ARDL and Nonlinear ARDL models to long-term inflation targeting policy mechanisms in the United … States and China to assess the impact of oil price dynamics and asymmetries on inflation expectations in the two countries … changes on inflation expectations, and further provide a theoretical basis for the empirical results. We use data from 2010 to …

Why is inflation so much lower and at the same time more stable in developed economies in the 1990s, compared with the … inflation equilibrium. Our argument builds on the story proposed by Tom Sargent in "The Conquest of American Inflation," where … the fall in inflation in the 1980s was attributed to the changing beliefs informing monetary policy. To explain the escape …

In this paper we study 2-state Markov switching VAR models of monthly unemployment and inflation for three countries … variance in unemployment. In the U.S. case we find that the variance of unemployment is lower in the low inflation regime than … in hte high inflation regime, while the Swedish and the U.K. cases suggest that unemployment variability is higher in the …

aggressive monetary policies which results in less inflation volatility and persistence. We find this pattern emerges strongly …

volatility turns out to be positive, and there is no important relationship between inflation and volatility. The main policy …