-run inflation rate is positive and between 0.5% and 1.5% per year. A positive long-run inflation rate helps the fast-growing new … without learning-by-doing in new firms predicts an optimal long-run inflation rate near zero. In a two-sector model with …

permanent shifts of the exchange rate and the price level if a central bank anchors long-run inflation expectations. In line …-run price level target rather than a long-run inflation target avoids these permanent shifts of the exchange rate and the price …

We estimate the low-frequency relationship between fiscal deficits and inflation and pay special attention to its … suggest that the low-frequency relationship between fiscal deficits and inflation is strongly related to the conduct of …

We assess whether euro area inflation expectations, as measured by break-even inflation rates (BEIRs), have remained … illiquidity or demand-supply imbalances, but not reflecting genuine inflation expectations and inflation risk premia. We estimate … a bivariate VAR with short-term and long-term BEIRs, allowing for measurement noise in both. Anchoring of inflation …

developed here to test for unit roots in OECD panels of gross domestic products and inflation rates, yielding inference robust … to the `Great Moderation.' We find little evidence of trend stationarity, and mixed evidence regarding inflation …

In this study, we examine how the interaction between monetary policy and macroeconomic conditions affects inflation … uncertainty in the long-term. The unobservable inflation uncertainty is quantified by means of the slowly evolving unconditional … variance component of inflation in the framework of the semiparametric Spline-GARCH model (Engle and Rangel, 2008). For a cross …

We employ a money-based early warning model in order to analyse the risk of a low inflation regime in the Euro Area …, Japan and the US. The model specification allows for three different inflation regimes: "Low", "Medium" and "High" inflation … estimate the model with data from the mid 1970s up to the present. Our analysis suggests that the risks of a "Low" inflation …

A constant price level facilitates cooperation among firms whereas steady inflation and deflation rates lower firms …' ability to cooperate. In an experimental market with price competition we show that both inflation and deflation signicantly … welfare: depending on the market structure, inflation and deflation lead to significantly lower real prices and higher welfare. …