chartalist, respectively), the rate of wage inflation depends on either unemployment or the wage-setting policies of the … inflation affects aggregate demand through its impact on the value of assets and debts. Bank rates depend on an endogenous …

A regime shift towards increased inflation expectations is credited with jumpstarting the recovery from the Great … Depression in the United States. Germany experienced a recovery as fast and strong in the 1930s. What role did inflation … expectations play at the start of this remarkable economic upturn? To answer this question, we study inflation expectations in …

This paper investigates the accuracy of point and density forecasts of four DSGE models for inflation, output growth … models overestimate uncertainty around point forecasts. …

A number of academic studies suggest that from the mid-1990s onwards there were changes in the link between inflation … structural relationship between inflation and output, as opposed to a change in the size and nature of the shocks hitting the … inflation and resource utilization and its dependence on the nature and size of the shocks. Our analysis suggests that the …

This paper empirically compares sticky-price and sticky-information Phillips curves considering inflation dynamics in … moments of inflation. Under baseline calibrations, the two models perform similarly in almost all countries. Under estimated … unconditional moments of inflation dynamics better while sticky information is more successful in matching co-movement of inflation …

This paper investigates the accuracy of forecasts from four DSGE models for inflation, output growth and the federal … federal funds rate. Only for inflation the model forecasts are dominated by the Greenbook projections. A comparison with … models overestimate uncertainty around point forecasts. …

during and following the recent Great Recession, and that models in which inflation depends on economic slack cannot explain … the recent muted behavior of inflation, given the sharp drop in output that occurred in 2008-09. In this paper, we use a … protracted decline in inflation. The model does so even though inflation remains very dependent on the evolution of both economic …

This paper considers a sticky price model with a cash-in-advance constraint where agents forecast inflation rates with …. While average output and inflation result the same as under rational expectations, higher moments differ substantially …: output and inflation show persistence, inflation responds sluggishly to nominal disturbances, and the dynamic correlations of …

This paper assesses the OECD’s projections for GDP growth and inflation during the global financial crisis and recovery … the slowdown and later the weak pace of the recovery – errors made by many other forecasters. At the same time, inflation …