This paper extends a standard New Keynesian model to describe the effects of anticipated shocks to inflation and …

during and following the recent Great Recession, and that models in which inflation depends on economic slack cannot explain … the recent muted behavior of inflation, given the sharp drop in output that occurred in 2008-09. In this paper, we use a … protracted decline in inflation. The model does so even though inflation remains very dependent on the evolution of both economic …

coincide with the Great Inflation of the 1970s, is that it exhibits the price puzzle, in that the inflation rate rises …

inflation risk. We calculate the term structure of inflation uncertainty in New Keynesian models when the monetary authority … achieves equilibria with substantially lower long-run inflation risk. With either sticky prices or sticky wages, a price path … target reduces the variance of inflation by an order of magnitude more than it increases the variability of the output gap …

We document that persistent and lagged inflation (with respect to output) is a world-wide phenomenon in that these … short-run inflation dynamics are highly synchronized across countries. In particular, the average cross-country correlation … of inflation is significantly and systematically stronger than that of output, while the cross-country correlation of …

- although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … asserted that, in the context of the new Phillips curve (NPC), inflation is a jump variable. We argue that this persistency … setting (in which real variables not only affect inflation, but are also influenced by it), standard wage-price staggering …

inflation, the usual type of wage indexation observed in practice. Drawing mainly on recent research by the author, this paper … examines the consequences of wage indexation to lagged inflation on aggregate wage formation, the cost of disinflation under … choice of exchange rate regime, and the level and variability of inflation …

This paper investigates various output gap measures in a simple inflation forecasting framework. Reflecting the … pressures, including a gap could improve the accuracy of autoregressive inflation forecasting. This assertion is tested in a …

employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …