rigidity during a period of a runaway inflation, when the annual inflation rate was in the range of 60%–430%. Surprisingly, we … price adjustments even in a period of a runaway inflation, when 85 percent of the prices change every month …

shocks as well as general inflation. Sellers can change price only by incurring a real menu cost.' We calibrate this cost and … and Kryvtsov. The prediction of the calibrated model for the effects of high inflation on the frequency of price changes …

illustrate the use of this approximation, we use it to characterize the change in the nature of the Phillips curve and the money-inflation … change in money growth-inflation relation …

on correlations between inflation and its moments goesback over thirty years, and was first used to reject the … independence of relative price changes and inflation that is assumed in neo- classical models. More recently, New Keynesian … macroeconomists have shown that the strong positive correlation between inflation and the skewness of the price change distribution is …

The organization of the paper is simple. We start by examining the real effects of anticipated inflation in an economy … that has fully adapted to inflation. In particular, in this economy: (i) public institutions are fully attuned to inflation … (or inflation proof), (ii) the same is true of private institutions, (iii) current and future inflation is fully reflected …

Sticky-price models with rational expectations fail to capture the inertia in U.S. inflation. Models with backward …-looking expectations capture current inflation behavior, but are unlikely to fit other monetary regimes. This paper seeks to overcome these … problems with a near-rational model of expectations. In the model, agents make univariate forecasts of inflation: they use …

We test for bias and efficiency of the ECB inflation forecasts using a confidential dataset of ECB macroeconomic … quarterly projections. We investigate whether the properties of the forecasts depend on the level of inflation, by … distinguishing whether the inflation observed by the ECB at the time of forecasting is above or below the target. The forecasts are …

Proposals for 'inflation targeting' as a strategy for monetary policy leave open the important operational question of … how to determine whether current policies are consistent with the long-run inflation target. An interesting possibility is … that the central bank might target current private-sector forecasts of inflation, either those made explicitly by …