Inflation persistence in U.S. data can be characterized by a vector autocorrelation function relating inflation and … central bank using an interest rate target can account for inflation persistence. There are no sticky prices and no liquidity … effects. Agents' decisions in a period are taken only after all shocks are observed. Monetary policy induces inflation …

Inflation is often associated with a loss for the poor in the medium and long run. The cyclical effects are basically … and their productivity. We emphasize three channels through which unanticipated inflation affects the income and wealth … distribution: 1) factor prices, 2) the 'bracket creep', and 3) sticky pensions. In our model, unanticipated inflation decreases the …

If the central bank follows an interest rate rule, then inflation is likely to be persistent, even when prices are … fully flexible. Any shock, whether persistent or not, may lead to inflation persistence. In equilibrium, the dynamics of … inflation are determined by the evolution of the spread between the real interest rate and the central bank's target. Inflation …