The study focuses on analyzing an economy that applies inflation targeting rule where the policy interest rate is … affirmant of inflation. As a result, the apriori target and posteriori result contrast in terms of price stability. Therefore …, the achievement of price stability is involuntarily negatively affected. In an economy that applies inflation targeting …

firms' market power in explaining inflation, and in favor of the "sellers' inflation" hypothesis (Weber and Wasner (2023 …

accounts of profit inflation, wherein U.S. firms' market power allowed them to maintain - and, for some firms, increase - their …

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 …

aggregate demand still can cause significant inflation. …

We discuss the concept of core inflation and its relevance for policymakers and then review a variety of approaches … displayed by U.S. inflation data and discussing conceptual issues around measurement, we provide a unified framework to …

In order to explain the joint fluctuations of output, inflation and the labor market, this paper first develops a … general equilibrium model that integrates a theory of equilibrium unemployment into a monetary model with nominal price … helps to explain the sluggishness of inflation and the persistence of output after a monetary policy shock. The ability of …