This paper investigates the predictive power of the shadow rate for the inflation rate in countries with a zero lower … parameters we compare the out-of-sample forecasting performance of an inflation model including a shadow rate interaction term … inflation rate are evaluated. The models including the shadow rate interaction term are found to outperform the benchmark ones …

This paper investigates the predictive power of the shadow rate for the inflation rate in countries with a zero lower … parameters we compare the out-of-sample forecasting performance of an inflation model including a shadow rate interaction term … inflation rate are evaluated. The models including the shadow rate interaction term are found to outperform the benchmark ones …

real and nominal risk premia through endogenous inflation. The estimated model captures macroeconomic and yield curve … properties of the U.S. economy, implying significantly positive real term and inflation risk bond premia. Both premia are induced … by wage rigidities as a compensation for permanent productivity shocks. Stronger policy-rule responses to inflation …

movements are caused by inflation rate fluctuations, remaining constant the real interest rate. Finally, we analyze the Fisher …

This paper examines the implications of inflation persistence for the inverted Fisher hypothesis that nominal interest … rates do not adjust to inflation because of a high degree of substitutability between money and bonds. It is emphasized that … the substitutability between nominal assets and capital renders the hypothesis inconsistent with the data when inflation …

inflation and interest rate expectations; developments in ex ante saving-investment balances, and shifts in investors. portfolio …

investigates the implications of euro adoption in the Slovak Republic for inflation and interest rates with an attempt to quantify … raise the Slovak inflation rate above the euro area level. As capital markets have already fully priced in euro membership …

. This model decomposes the changes in original inflation series as two new series: increases and decreases in inflation … rates. Hence, it enables us to examine the Fisher effect in terms of increases and decreases in inflation separately. The …

, linking nominal interest rates to inflation; however, there is no evidence of the full adjustment of the former to the latter …

, linking nominal interest rates to inflation; however, there is no evidence of the full adjustment of the former to the latter …