strategies with a strong history dependence lose their advantage over inflation targeting in mitigating a demand …-driven recessions when interest rates are constrained by the ELB. For supply shocks, inflation t argeting o utperforms h istory …-dependent r ules f or a s ufficiently high degree of BR. An exponential average inflation targeting rule, which features a …

This paper studies the optimal long-run inflation rate in a labor search and matching framework in the presence of … downward nominal wage rigidity. Optimal monetary policy features positive inflation in the long run; the optimal annual long …-run inflation rate for the U.S. economy is slightly below 1 percent with a money demand motive and around 2 percent otherwise …

Global inflation has risen sharply from its lows in mid-2020, on rebounding global demand, supply bottlenecks, and … soaring food and energy prices, especially since the Russian Federation's invasion of Ukraine. Markets expect inflation to … developments, the risk of stagflation-a combination of high inflation and sluggish growth-has risen. The recovery from the …

inflation presumably caused by oil price increases. In this paper a structural cointegrated VAR model has been considered for … to fight inflation. In turn, increases in interest rates are transmitted to real economy by reducing output growth and … the inflation rate …

This paper develops a general equilibrium monetary model with performance incentives to study the inflation …-unemployment relationship. A long-run downward-sloping Phillips curve can exist with perfectly anticipated inflation because workers' incentive … to exert effort depend on financial market returns. Consequently, higher inflation rates can reduce wages and stimulate …

subsidies), we show that a negative oil price shock contracts aggregate GDP, boosts non-oil GDP, increases headline inflation … contractionary effect of a negative oil price shock on aggregate GDP is moderated, headline inflation decreases, while the exchange …