In a simple New Keynesian model, we derive a closed form solution for the inflation-gap persistence parameter as a … to inflation and the output gap, we show that the empirically observed changes in U.S. inflation-gap persistence during … Benati’s (2008) view that inflation persistence should not be considered a structural parameter in the sense of Lucas. …

Reserve does not target inflation or react to inflation signals.ʺ Rather, the Fed reacts to the very realʺ signal sent by … the Federal Reserve largely ceased reacting to inflation or high unemployment, but continued to react when unemployment … for the effects of inflation and unemployment. -- Personal Income ; Wage Level ; Wage Differentials ; Price Level …

inflation and the extent of real wage rigidity but that these effects depend on the definition of reference norms (e.g. how … leadership (i.e. asymmetries in reference norms). -- Inflation Persistence ; Real Wage Rigidity ; Staggered Contracts ; Wage …

This paper presents a new mechanism through which monetary policy rules affect inflation persistence. When assuming … the traditional demand channel of monetary transmission have a long-lasting effect on inflation dynamics. The Calvo model … around positive trend inflation. With realistic calibration of trend inflation and the monetary policy rule, the model can …

While the long run relation between money and inflation is well established, empirical evidence on the adjustment to … volatility of the transmission from monetary pressure to inflation follows some structure, i.e., if the parameter regime can … state space model ; inflation ; money …

In a simple New Keynesian model, we derive a closed form solution for the inflation-gap persistence parameter as a … to inflation and the output gap, we show that the empirically observed changes in U.S. inflation-gap persistence during … Benati’s (2008) view that inflation persistence should not be considered a structural parameter in the sense of Lucas. …

In a simple New Keynesian model, we derive a closed form solution for the inflation persistence parameter as a function … inflation and the output gap, we show that the empirically observed changes in U.S. inflation persistence during the period 1975 …) view that inflation persistence should not be considered a structural parameter in the sense of Lucas. …

Even low levels of trend inflation substantially affect the dynamics of a basic new Keynesian DSGE model when monetary … policy is conducted by a contemporaneous Taylor rule. Positive trend inflation shrinks the determinacy region. Neither the … Taylor principle, which requires the inflation coefficient to be greater than one, nor the generalized Taylor principle …

rules when trend inflation is non-zero. We find that when trend inflation is high, the REE is likely to be expectationally …) introduced in the Taylor rule. Our results suggest that a high macroeconomic volatility during the period of high trend inflation …

Even low levels of trend inflation substantially affect the dynamics of a basic new Keynesian DSGE model when monetary … policy is conducted by a contemporaneous Taylor rule. Positive trend inflation shrinks the determinacy region. Neither the … Taylor principle, which requires the inflation coefficient to be greater than one, nor the generalized Taylor principle …