In this paper, we examine how economic shocks affect the distribution of household inflation expectations. We show that … the dynamics of households' expected inflation distributions are driven by three distinctive functional shocks, which … influence the expected inflation distribution through disagreement, level shift and ambiguity. Linking these functional shocks …

Inflation and unemployment rate were largely disconnected between 2000 and 2019 in advanced economies. We decompose … core inflation into two parts based on the cyclical sensitivity of CPI components and document several salient facts: (i … inflation and unemployment rate. The approach has potential to help understand forces shaping price pressures during the …

The consensus among central bankers is that higher inflation expectations can drive up inflation today, requiring … tighter policy. We assess this by devising a novel method for identifying shocks to inflation expectations, estimating a semi … data for the United States, we find that a positive inflation expectations shock is deflationary and contractionary …

This study investigates the relationship between the adoption of renewable energy and the sensitivity of inflation to … oil and gas prices leading to a surge in inflation, the notion of a "divine coincidence" suggests that higher levels of … renewable energy adoption, in addition to fighting climate change, could mitigate fossil fuel price-induced inflation volatility …

modeling framework to study the conditions under which these policies can curb inflation. We first consider a closed economy … model to show that a consumer subsidy may be counterproductive, especially as an inflation-fighting tool, when applied … energy subsidies to reduce core inflation and stimulate demand if introduced by a small group of countries which collectively …