To appropriately model the observed slow response of real variables to nominal shocks, macroeconomic models augment nominal with real rigidities. One very popular way of modelling such a real rigidity is to assume a non-constant demand elasticity. While there has been conducted ample empirical...

We investigate the updating behavior of individual consumers regarding their short- and long-run inflation expectations. Utilizing the University of Michigan Survey of Consumer's rotating panel microstructure, we can identify whether individuals adjust their inflation expectations over a period...

Inflation expectations play a crucial role for monetary policy transmission, having become even more important since the emergence of unconventional monetary policy. Based on survey data provided by Consensus Economics, we assess determinants of professional inflation expectations for the G7...

Following the Asian Financial Crisis in 1997-98, a number of regional central banks have adopted inflation targeting. We explore how successful this framework has been by looking at the persistence of inflation as measured by the sum of the coefficients in an autoregressive model for inflation...

This paper provides an empirical comparison of the sticky-price and the sticky information Phillips curves on the basis of second moments of inflation for six countries, the US, the UK, Germany, France, Canada, and Japan. We evaluate the models' abilities to match empirical second moments of...

We explain the role of the Phillips Curve at the ECB in the analysis of the economic outlook and the formulation of monetary policy. First, revisiting the structural Phillips Curve, we highlight the challenges in recovering structural parameters from reduced-form estimates and relate the...