to fight inflation and a withdrawal of fiscal support amid high debt weigh on economic activity. Inflation is falling … inflation is expected to fall to 5.8 percent in 2024 and 4.4 percent in 2025, with the 2025 forecast having been revised down …

-kinked demand schedule for goods produced by firms. Our model can jointly account for the modest decline in inflation during the … Great Recession and the surge in inflation during the Post-Covid period. Because our model implies a stronger transmission … of shocks when inflation is high, it generates conditional heteroskedasticity in inflation and inflation risk. Hence, our …