. Our analysis improves upon existing work by endogenising the volatility of both output and inflation. Improved …

Inflation volatility is clearly important for structural analysis, forecasting and policy purposes, yet it is often …

We analyse the interaction between private agents? uncertainty about inflation target and the central bank's data … uncertainty. In our model, private agents update their perceived inflation target and the central bank estimates unobservable … economic shocks as well as the perceived inflation target. Under those two uncertainties, the learning process of both private …

a unified framework that incorpo- rates regime switching both in shock variances and in the inflation target. We propose … the inflation target are not the main driving force of high inflation in the 1970s. The model that best fits the U.S. time …

shocks driving the economy and the systematic response of monetary policy to inflation: More flexible prices amplify the … the effect of supply shocks on output if interest rates are very responsive to inflation. Next, we estimate a medium …

, could not only push up CPI inflation but also affect its volatility. Existing empirical literature has only found that … carbon pricing schemes are generally associated to a transitory effect on the level of inflation. This paper assesses … empirically the effects of carbon pricing on inflation volatility for both carbon tax and cap-and-trade schemes (also known as …

inflation and output volatility by replacing its inflation target with a price-level target. This paper studies whether a Taylor … rule that targets the price-level instead of the rate of inflation would be able to reduce nominal and real exchange rate … volatility without compromising the goals of inflation and output stability. The results indicate that price-level targeting …

1980's. In particular, inflation persistence has declined sharply. The paper demonstrates that this decline is consistent …) the central bank more aggressively responds to inflation …

factors that influence trend inflation in the USA. Using structural shocks that incorporate a broad set of information for the … US economy, we find that four structural shocks have significant effects on trend inflation: productivity, price mark …-up, government policy, and finance. During and in the aftermath of the Great Recession, trend inflation became more volatile after …

purposes, and the theory predicts that conditional on such shocks output growth should be more volatile than inflation in …We address this question by examining the conditional dynamics of inflation and output growth in response to markup … shocks for 14 industrialized countries. Markup shocks create a trade-off between output gap and inflation stabilization …