We use an agent-based computational approach to show how inflation can worsen macroeconomic performance by disrupting … of inflation above 3 percent has a substantial deleterious effect, but lowering it below 3 percent has no significant … may fail to detect a significant negative effect of trend inflation on output even when such an effect exists in reality …

The cost of the FED maintaining a low target level of inflation is measured by Lucas (2000) and Ireland (2009) as the … welfare cost of inflation based on money demand. Their estimates require stability of the money demand function. Ireland finds … inflation to the post-Volcker period …

This chapter aims at assessing the long-run determinants and the short-run dynamics of inflation in each country … cointegrating VAR approach, which allows for a structural long-run analysis of inflation determinants along with an accurate … inflation differ in the countries belonging to the Euro Area, but also that cost-push factors have a considerable role in …

This study adopts the long-run structural VAR approach to analyse the determinants of inflation in the Euro Area … economy over the period 1985:1-2003:2. Theoretical relationships link inflation to markup and output gap, respectively. The … short-run dynamic properties of inflation are investigated using a structural VECM. Inflation is explained by a mixture of …

This paper proposes a dynamic stochastic general equilibrium model that endoge­nously generates inflation persistence … contrast with traditional sticky price models, the framework yields inflation inertia, a delayed effect of monetary policy … shocks on inflation, and the observed "reverse dynamic" correlation between inflation and economic activity …

This article shows how the recovery of inflation in 2009-10 occurred precisely at the only time (since 1985) the models … would predict disinflation, i.e., inflation went up when the models said it should go down …

inflation. We introduce a small idiosyncratic component in firms' marginal costs and let the economywide average marginal cost …

We use an agent-based computational approach to show how inflation can worsen macroeconomic performance by disrupting … of inflation above 3 percent has a substantial deleterious effect, but lowering it below 3 percent has no significant … may fail to detect a significant negative effect of trend inflation on output even when such an effect exists in reality. …

The study critically analyzed the dynamic and simultaneous inter-relationship between inflation and its determinants in … root test and the result reveals that inflation rate, growth rate of real output and money supply, and real share of Fiscal … inflation and its determinants were examined usig the Augmented Engle-Granger (AEG) cointegration test and Error Correction …