What are the implications of targeting different measures of inflation? We extend a basic theoretical framework of … optimal monetary policy under inflation targeting to include several components of CPI inflation ratio, and analyze the … implications of using different measures of inflation as target variable core inflation, CPI excluding interest rates, and headline …

inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model which … resolves this apparent micro - macro conflict. Our model is consistent with post-war U.S. evidence on inflation inertia even …

In this paper we study 2-state Markov switching VAR models of monthly unemployment and inflation for three countries …: Sweden, United Kingdom, and the United States. The primary purpose is to examine if periods of low inflation are associated … variance in unemployment. In the U.S. case we find that the variance of unemployment is lower in the low inflation regime than …

prediction procedure is applied to a seven variable system with focus on forecasting the Swedish inflation. …

Viewed over the whole available history of fiat money in Sweden, high levels of inflation have been present only over a … short time span. It is only in the last two decades - the seventies and the eighties - that inflation has been high, at an … inflation rate has been about two percent. In January 1993, the governing board of the Riksbank announced an inflation target of …

The correlation between persistent changes in the markup in one sector of an economy and the inflation rate is …. We find that the correlation is in general positive under an exogenous money growth rule as well as under an inflation … targeting rule. That is, a decrease of the markup leads to a decrease in the CPI-inflation rate. However, if inflation is …

Time series regressions indicate that age structure has significant forecasting power on Swedish inflation. The results … corresponding to the stipulated inflation target. The age model is also considerably better than the consensus forecasts and it is …

increase in conservatism triggers two opposite effects. It reduces the inflation bias of discretionary monetary policy and …