inflation and real rigidity. Analytically, I find that important dynamics in the NKPC are canceled out due to the restrictive … dynamic structure introduced by the non-constant hazards is also quantitatively important to the inflation dynamics …. Incorporation of real rigidity and trend inflation strengthen this effect even further. With reasonable parameter values, the model …

resulting Phillips curve involves lagged inflation and lagged expectations. It nests the Calvo NKPC as a limiting case in the … inflation always has negative coefficients, thereby making it impossible to interpret inflation persistence as intrinsic. The … numerical evaluation shows that the increasing hazard function leads to hump-shaped impulse responses of inflation to monetary …

We introduce a dynamic panel threshold model to shed new light on the impact of inflation on long-term economic growth … industrialized countries, our results confirm the inflation targets of about 2% set by many central banks. For non …-industrialized countries, we estimate that inflation hampers growth if it exceeds 17%. Below this threshold, however, the impact of inflation …

Recent monetary search and Calvo-type models predict that the relationship between inflation and price dispersion is U …-shaped, implying an optimal rate of inflation above zero. Moreover, monetary search models emphasize a critical dependence of the real … effects of inflation on sellers' market power, whereas Calvotype models suggest that the degree of price rigidity …

This paper presents a new mechanism through which monetary policy rules affect inflation persistence. When assuming … the traditional demand channel of monetary transmission have a long-lasting effect on inflation dynamics. The Calvo model … around positive trend inflation. With realistic calibration of trend inflation and the monetary policy rule, the model can …

After the introduction of a stabilization program Israeli inflation decreased from 400% in 1985 to 2% in 2013. This … process is defined by three clear steps of high, medium and low inflation. The break dates are in line with major economic …

Argentina began 2024 with the odd privilege of becoming the country with the highest inflation in the world. Although … inflation has once again become a first-order global issue due to the impact on the prices of basic goods of the Covid-19 … pandemic and the war in Ukraine, Argentinian inflation rates were well above the global and even regional average for the …