Empirical evidence suggests that considerable differentials in inflation rates exist across households. This paper … investigates how central banks should react to household inflation heterogeneity in a tractable New Keynesian model. We include two … households that differ in their consumer price inflation rates after adverse shocks. The central bank reacts to either an average …

This study examines whether central banks can combat inflation that is caused by rising energy prices. By using a high … global energy prices (in dollars). Our counterfactual analysis demonstrates that both effects are present, but the latter …

, consistent with the evidence, increases with inflation. Because we assume that firms sell multiple products and choose how many … inflation accelerator-a feedback loop between inflation and the fraction of price changes-that significantly increases the slope … of the Phillips curve during periods of high inflation. Applied to the U.S. time series, our model predicts that the …

-price changes and the extent to which the fraction of price changes increases with inflation in the U.S. time-series. Though the …

fraction of price changes increases with inflation. In addition, in the presence of strategic complementarities, they predict …

This paper examines the drivers of the post-pandemic surge in inflation in four small open economies: Czechia, Hungary … significantly to inflation in the post-2020 period across countries, alongside notable contributions from domestic factors …, while monetary policy shocks have had a minimal impact on inflation since 2022 in all the countries considered. Additionally …