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. …

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 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 …

changed central banking in many ways: by shifting the focus of monetary policy from fighting too high inflation towards … fighting too low inflation; by prompting new ‘experimental’ non-conventional measures, which risk to cause large, long …