When inflation originates from distributional conflicts, shifts in inflation expectations, or energy price shocks …, monetary policy (MP) is a costly stabilization instrument. We show that a tax on inflation policy (TIP), which would require … decisions, tackle excessive inflation and reduce output volatility, without exacerbating price distortions. While proposals from …

to fight inflation and a withdrawal of fiscal support amid high debt weigh on economic activity. Inflation is falling … inflation is expected to fall to 5.8 percent in 2024 and 4.4 percent in 2025, with the 2025 forecast having been revised down …

We examine whether changes in the distribution of household inflation expectations contain information on future … inflation. We first discuss recent shifts in micro data from the US, UK, Germany, and Canada. We then zoom in on the US to … explore econometrically whether distributional characteristics help predict future inflation. We find that the shape of the …

What are the contributions of demand and supply factors to inflation? To address this question, we follow Shapiro (2022 …) and construct quarterly demand-driven and supply-driven inflation series for 32 countries utilizing sectoral Personal … Consumption Expenditures (PCE) data. We highlight global trends and country-specific differences in inflation decompositions …

This paper analyses inflation dynamics in Bulgaria using different complementary econometrics technics. We find that … common factors play a large role in the EU's inflation variation but impact individual countries differently due to country …-specific factors. Greater weight of energy and food in Bulgaria's CPI basket amplifies the impact of shocks on headline inflation …

This paper identifies over 100 inflation shock episodes in 56 countries since the 1970s, including over 60 episodes … linked to the 1973-79 oil crises. We document that only in 60 percent of the episodes was inflation brought back down (or … "resolved") within 5 years, and that even in these "successful" cases resolving inflation took, on average, over 3 years …

Latin America and the Caribbean (LAC) is softening as the effect of tighter policies to combat inflation is taking hold and … headline inflation on a downward trajectory. Core inflation has also started to ease, as price pressures are becoming less …

The surge in energy prices in 2022 has been a defining factor behind the increase in euro area inflation. We assess the … to mute the effects of the increase in energy prices and to lower inflation. Overall, we find that these unconventional … measures reduced euro area inflation by 1 to 2 percentage points in 2022 and may avoid an undershoot later on. When …

Nominal wage growth in Denmark has so far been modest and outpaced by high inflation, putting real wage growth in … eventual impact on inflation. The analysis suggests that wage formation in Denmark has historically been partly backward …-looking, and economic slack also has played a role. Given these, high inflation realized thus far and the tightness in the labor …