We investigate the relationship between inflation uncertainty and monetary policy transmission in the U.S. economy … through the external finance premium and the term structure of interest rates appears strongly dependent on inflation …

shocks, emphasizing an important role of inflation. Periphery countries’ monetary policy autonomy is subject to their … inflation. When the center country increases the interest rate, periphery countries with high inflation are more willing to … follow. In contrast, those with low inflation are reluctant to do so. We further confirm that periphery countries’ monetary …

exchange rate and the price level if a central bank implements an inflation target by means of a traditional Taylor rule. These … level to a temporary risk premium shock are larger and more persistent when the ZLB is binding. Our theoretical discussion …