zero, business cycle consideration requires positive long-run inflation so that the nominal interest rate can be adjusted … both effects, we find that the welfare-maximizing monetary policy rule is characterized with a steady-state inflation rate … loss functions comprising volatilities of macro variables such as output and inflation, the resultant policy rules are …

We provide new insights on the formation of inflation expectations - in particular at a time of great financial and … answered a weekly questionnaire about their short-, medium- and long-term inflation expectations. Participants received common … information sets with data relevant to euro area inflation. Our analysis of survey responses reveals several interesting results …