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 …

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 …

We investigate the updating behavior of individual consumers regarding their short- and long-run inflation expectations … adjust their inflation expectations over a period of six months. We find evidence that the updating frequency has been …. Moreover, individual expectations are found to be more accurate after an update and forecast accuracy is affected by inflation …

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 …

In this paper we explore the degree of anchoring of inflation expectations of consumers by analysing the comovement in … short- and long-run expectations. If inflation expectations are firmly anchored, a transitory shock should influence the … short-run inflation expectations but not effect long-run inflation expectations. Utilizing the University of Michigan Survey …

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 …