shock. The changes in the responses of sectoral inflation rates are entirely driven by services deepening … endogenously over time. The rise of services dampens the responses of aggregate and sectoral inflation rates to a monetary policy …

shocks reduces the sensitivity of inflation to changes in aggregate demand. We test and corroborate the theoretical … significant role for the decline in the sensitivity of inflation to movements in aggregate demand from mid-1980s to mid-2000s …

We develop a theoretical framework to account for the observed instability of the link between inflation and fiscal … bank that has full control over inflation. When policy makers deviate from this Virtuous regime, agents conduct Bayesian … pessimistic about a prompt return to the Virtuous regime and inflation starts drifting in response to a fiscal imbalance. Shocks …

restrictions which are not rejected by the data - the cost channel helps to generate an initial rise of inflation after a monetary …