The paper examines how relative price shocks can affect the price level and then inflation. Using Indian data, it is … observed that: (1) Price increases exceed price decreases. Aggregate inflation depends on the distribution of relative price … changes — inflation rises when the distribution is skewed to the right; (2) Such distribution-based measures of supply shocks …

price level. The analysis compares the properties of optimal policy in regimes ranging from pure inflation targeting (IT …), to a form of weighted-average inflation targeting (WAIT), to pure price level targeting (PLT). Strategies such as WAIT …

-difference version is not so suspect. While evidence is found of a long-run relationship between Austria inflation and money growth, even … also rejected, but there is a statistically significant long-run relationship between Austrian and German inflation …

We develop the theory of price-level determination in a range of models using both ad hoc policy rules and jointly …

Inflation is determined by interaction between real factors and monetary policy. Among the most important real factors …-sector New Keynesian model to decompose the behavior of U.S. inflation into contributions from sectoral (or "relative price … the post-1994 period in which inflation and the monetary policy regime appeared to be stable. In addition to providing a …