unanticipated shocks of equal size news shocks behave in a welfare-enhancing manner, and (2) purely history-dependent monetary … policy rules do not constitute an effective monetary instrument to keep welfare losses to a minimum. …

inflation, economic fluctuations, and welfare. It is the backbone of the new generation of medium-scale models under development … at major central banks and international policy institutions, and provides the theoretical underpinnings of the inflation …, the implications for monetary policy are addressed, with a special emphasis on the desirability of inflation targeting …

inflation, economic fluctuations, and welfare. It is the backbone of the new generation of medium-scale models under development … at major central banks and international policy institutions, and provides the theoretical underpinnings of the inflation …, the implications for monetary policy are addressed, with a special emphasis on the desirability of inflation targeting …

Empirical evidence suggests consumers rely on their shopping experiences to form beliefs about inflation. In other …. Learning by shopping anchors households' beliefs about inflation to its past, causing disagreement with firms over the value of … inflation, increases the degree of anchoring of households' inflation expectations, and flattens the slope of the Phillips curve …

significantly positive inflation rate in France, Germany and Italy: the steady-state inflation rate, jointly maximising welfare in … up optimal inflation targets further. The welfare costs of targeting an inflation rate of zero, as suggested by monetary … Price-setting Microdata Analysis Network (PRISMA) for the level of inflation that central banks should target. The micro …

unanticipated shocks of equal size news shocks behave in a welfare-enhancing manner, and (2) purely history-dependent monetary … policy rules do not constitute an effective monetary instrument to keep welfare losses to a minimum. …

high during 2016-2019, keeping inflation below the Reserve Bank's target band. Optimal monetary policy in 2016-2019 would …

high during 2016-2019, keeping inflation below the Reserve Bank's target band. Optimal monetary policy in 2016-2019 would …

Empirical evidence suggests that considerable differentials in inflation rates exist across households. This paper … investigates how central banks should react to household inflation heterogeneity in a tractable New Keynesian model. We include two … households that differ in their consumer price inflation rates after adverse shocks. The central bank reacts to either an average …