The correlation between persistent changes in the markup in one sector of an economy and the inflation rate is …. We find that the correlation is in general positive under an exogenous money growth rule as well as under an inflation … targeting rule. That is, a decrease of the markup leads to a decrease in the CPI-inflation rate. However, if inflation is …

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 …

This paper estimates a New Keynesian model with trend inflation and contrasts Taylor rules featuring fixed versus time …-varying inflation target while allowing for passive monetary policy. The estimation is conducted over the Great Inflation and the Great … Moderation periods. Time-varying inflation target empirically fits better and active monetary policy prevails in both periods …

Long-term bond yields contain a risk-premium, an important part of which is compensation for inflation risks. The …

inflation and the extent of real wage rigidity but that these effects depend on the definition of reference norms (e.g. how …

and inflation in the member countries. Stress in a country is defined as the difference between the country's actual short …

-curve regressions: The positive dependence of inflation on its own lags. It is shown that staggered price contracting models instead …

determinant of the monetary transmission mechanism, namely the degree of persistence characterising the inflation process. The … types of staggered contracts specifications which induce quite different degrees of inflation persistence. The paper shows … that inflation persistence is high when uncertainty about the prevailing degree of inflation persistence is pervasive …

This paper examines the properties of interest rate rules aimed at controlling aggregate price inflation. Policies are … compared in two models having either flexible or sticky inflation The latter is assumed to derive from a traditional, adaptive …-expectations augmented Phillips curve. The flexible inflation model derives from the modem view, due to Gray (1976) and Fischer (1977), that …