transition countries, inflation has generally been higher and more volatile than in advanced economies. The analysis reveals that … the subindex housing/energy appears to be the main driving force behind overall inflation in the region. In most of the … increasing over time. Inflation volatility in south-eastern Europe is significantly higher than in the euro area. While this is …

This paper considers a sticky price model with a cash-in-advance constraint where agents forecast inflation rates with …. While average output and inflation result the same as under rational expectations, higher moments differ substantially …: output and inflation show persistence, inflation responds sluggishly to nominal disturbances, and the dynamic correlations of …

alternative monetary policy strategies. We start with the relationship between output and inflation and investigate the fit of the … reject the nominal contracting model in favor of the relative contracting model which induces more inflation persistence, we … in countries which transitioned out of a high inflation regime such as France and Italy. We close the model by estimating …

of the relation between market power and inflation. We examine this relation for individual firms in eleven U … generate quantitative evidence on the responsiveness of market power to inflation. We find that inflation usually has a …

the New-Keynesian variety and dynamic adjustments of a business and an inflation climate in an `Old-Keynesian' tradition …. Over the two subperiods of the Great Inflation and Great Moderation, both of them are estimated by the method of simulated …, inflation and the interest rate, but optionally also a measure of the raggedness of the three variables. In short, the …

We assess whether euro area inflation expectations, as measured by break-even inflation rates (BEIRs), have remained … illiquidity or demand-supply imbalances, but not reflecting genuine inflation expectations and inflation risk premia. We estimate … a bivariate VAR with short-term and long-term BEIRs, allowing for measurement noise in both. Anchoring of inflation …

developed here to test for unit roots in OECD panels of gross domestic products and inflation rates, yielding inference robust … to the `Great Moderation.' We find little evidence of trend stationarity, and mixed evidence regarding inflation …

different policy regimes considered. In particular: (i) both in the long run and in short run equilibrium, a greater inflation …

model indexation regulates the sources of inflation persistence. When indexation is zero, the inflation gap is purely … forward- looking and inflation persistence depends only on the level of trend inflation, while full indexation makes the … inflation gap persistent and it eliminates the effects of trend inflation. We show that in the former case the optimal policy is …