This paper shows how endogeneous inflation inertia is generated by a simple modificaton of the quadratic adjustment … cost structure faced by economic agents. We derive the pertinent inflation relationships based on purely nominal rigidities … replicate empirical responses to an interest rate shock. -- Inflation Dynamics ; New Keynesian Phillips Curve; Business …

examine the relevance of the cost channel for inflation dynamics in G7 countries. Since firms' costs of working capital … inflation responses to monetary policy shocks, and can even lead to inverse inflation responses, when the cost channel is …

to match past inflation. However, the present paper proposes a much larger effect by using the job finding rate as the …

output and inflation, as observed in a vectorautoregression analysis. In contrast to backward indexation to past inflation …, which is often assumed in the literature, sticky information leads to a hump-shaped response in the inflation of flexibly …

The authors conduct an empirical analysis of the role of labor market activities in inflation and conclude that wage … growth is not very informative for predicting price inflation. But price inflation does seem to help predict wage growth …

-linear approximation of the inflation dynamics in the Calvo-model with elements of backward-looking pricing when the approximation takes … place around a positive average inflation rate. I derive a version of the "hybrid" New Keynesian Phillips Curve (NKPC) that … can be estimated using standard GMM techniques. Second, I characterize the inflation dynamics implied by the NKPC when …

Inflation in Mongolia resembles a roller coaster ride with sharp rises and steep drops. Understanding why is critical … for formulating and assessing monetary policy. Food prices are found to be a key driver of inflation, and, not surprising … underlying inflation by 1 percentage point. So, while inflation will remain volatile due to agricultural shocks, there is space …

, to assess the Phillips curve's ability to explain inflation dynamics over a wide variety of circumstances, over the 150 … years of the country's history. In Italy, the relation linking inflation with the cyclical situation in the economy emerged …

How does competition affect information acquisition of firms and thus the response of inflation and output to monetary … uncertainty about inflation as a non-targeted moment …

This paper asks whether a textbook Phillips curve can explain the behavior of core inflation in the euro area. A … critical feature of the analysis is that we measure core inflation with the weighted median of industry inflation rates, which … is less volatile than the common measure of inflation excluding food and energy prices. We find that fluctuations in core …