We employ a money-based early warning model in order to analyse the risk of a low inflation regime in the euro area, Japan and the US. The model specification allows for three different inflation regimes: Low, Medium and High inflation, while state transition probabilities vary over time as a...

This thesis consists of three self-contained chapters in empirical macroeconomics and analyzes important issues related to monetary policy and labor supply. The first chapter deals with the problem of weak identification in the estimation of inflation dynamics and a monetary policy rule. We...