, subsequently, we didn't see the inflation they predicted. We show that these puzzles disappear in a Vector Autoregressive model … much of the inflation dynamics in the 2012-2014 euro area missing inflation episode. Consequently, economists and models … that excessively focused on the global nature of inflation were liable to miss the contribution of deflationary domestic …

inflation generating process. This research strategy allows to conclude that inflation is characterized by a low degree of …

This paper examines the relationship between cyclical output and inflation in models commonly used for monetary policy … finding is that these models imply a strong negative relationship between inflation and output, a result that is at odds with …

cyclical movements in Treasury bond premia. Downward nominal rigidities create state-dependence in output and inflation … dynamics: a higher level of inflation makes prices more flexible, leading output and inflation to be more volatile, and bonds … to become more risky. The model matches well the relation between the level of inflation and a number of salient macro …

This paper focuses on modeling and forecasting inflation in India using an augmented Phillips curve framework. Both … demand and supply factors are seen as drivers of inflation. Demand conditions are found to have a stronger impact on non …-food manufactured products (NFMP) inflation vis-a-vis headline wholesale price inflation; moreover, NFMP inflation is found to be more …

price model a 'weak' central bank response to inflation generates sunspot fluctuations, the consequences of pooling … of inflation persistence had not been investigated. Using Monte Carlo simulations from a purely forward-looking model …, this paper shows that indeterminacy can introduce a sizable persistence in the process of inflation. On the reduced form …

We investigate the importance of trend inflation and the real-activity gap for explaining observed inflation variation … in G7 countries since 1960. Our results are based on a bivariate unobserved-components model of inflation and … unemployment in which inflation is decomposed into a stochastic trend and transitory component. As in recent implementations of the …

The theme of this paper is whether there was a textbook-like inflation-output tradeoff in post-WWII Italy. We estimate … both standard and time-varying parameter models of the relationship between inflation and the level of real economic … at protecting wages from inflation. These two institutions contributed to the persistent inflation bias and macroeconomic …

as an Okun Law type relationship; and the New Phillips curve linking inflation to output gap. We estimated two models …

Since the early 1980s, the United States economy has changed in some important ways: Inflation now rises considerably … less when unemployment falls and the volatility of output and inflation have fallen sharply. This paper examines whether … volatility of monetary policy reaction functions can account for most or all of the change in the inflation …