We combine an estimated monetary policy rule featuring time-varying trend inflation and stochastic coefficients with a … medium scale New Keynesian framework calibrated on the U.S. economy. We find the impact of variations in trend inflation on … counterfactual exercises suggest that the change in the Federal Reserve's policy response to inflation is likely to have been the …

. Nonetheless, until recently, this research had not explicitly explored the implications of contracts that index wages to lagged … inflation, the usual type of wage indexation observed in practice. Drawing mainly on recent research by the author, this paper … examines the consequences of wage indexation to lagged inflation on aggregate wage formation, the cost of disinflation under …