European Central Bank’s Inflation Persistence Network. …

European Central Bank’s Inflation Persistence Network (ECB-IPN). …

, however, exhibits a remarkable increasing pattern, implying that pricing decisions are characterized by both time- and state …

, exhibits a remarkable increasing pattern, implying that pricing decisions are characterized by both time- and state …

the standard difference equation (DE) form, current inflation is a function of past inflation, expected future inflation …, and real marginal costs. The alternative closed form (CF) specification explicitly solves the DE form to express inflation … as a function of past inflation and a present-discounted value of current and expected future marginal costs. The CF …

reduced-form Phillips curve - the positive dependence of inflation on its own lags. In this paper, I show hat it is the 4 … price reset hazard function can generate simulated data that are consistent with inflation gap persistence found in US CPI … data. I conclude that a non-constant price reset hazard plays a crucial role for generating realistic inflation dynamics …

This paper presents an approach to identify aggregate price reset hazards from the joint dynamic behavior of inflation … and macroeconomic aggregates. The identification is possible due to the fact that inflation is composed of current and … with spikes at the 1st and 4th quarters. The implication of this finding for sticky price modeling is that the pricing …

-form (CF) estimates require by construction that expectations of inflation be model-consistent at all points in time, while the … inflation is insufficient to explain inflation persistence. -- closed form ; model-consistent expectations ; New Keynesian … Phillips curve ; forward-looking Euler equation ; time-varying trend inflation …

is subsequently shown that variations in trend inflation significantly explain variations in the degree of wage …