The transition economies were remarkably successful in curbing the inflation that took place after the initial transition and shocks and, more recently, most of the countries have brought inflation down to the levels found in major developed countries. In this paper we review the experiences and...

Two extraordinary inflation surprises of the last generation were the longstanding inflation shortfall from central bank targets and now the pandemic inflationary.Inflation shortfalls can be attributed to characteristics of monetary systems represented by a model with increasing inelasticity,...

The Global Financial Crisis inaugurated a profoundly transformative period for central banks and their independence. Two decades, with crises alternating with a new normal and eventually resulting in an inflation surge, and with multiple changes in the economic context and the contents and...

Im Jahr 2024 feiert der Euro sein 25-jähriges Bestehen. Die Stabilität des Euroraums und damit der europäischen Gemeinschaftswährung wurde seit dem Jahr 1999 mehrfach auf die Probe gestellt, insbesondere während der weltweiten Finanzkrise 2008/09 und der sich anschließenden europäischen...

Central banks (CB) around the world are currently exploring the implications of issuing a new form of sovereign currency known as Central Bank Digital Currency (CBDC). Introducing CBDC is a compelling need for governments and CBs alike, as powerful private players have already taken the lead in...

The U.S. Federal Reserve has committed hundreds of billions of dollars in unprecedented lending activities and purchases of mortgage-backed securities based upon its authority under the Federal Reserve Act, and particularly upon its interpretation of Section 13(3), a formerly untested and unused...

In this paper we study the relationship between labor market institutions and monetary policy. We use a simple macroeconomic framework to show how optimal monetary policy rules depend on labor institutions (labor adjustment costs, and nominal and real wage rigitidy) and social preferences...

Central banks have responded with exceptional vigour to the crisis by using their traditional interest-rate tools to their limits and deploying a wide range of unconventional measures. This paper documents these responses in a systematic way, reviews the evidence about their impact, and...

In this paper we study the relationship between labour market institutions and monetary policy. We use a simple macroeconomic framework to show how optimal monetary policy rules depend on labour institutions (labour adjustment costs, and nominal and real wage rigidity) and social preferences...

This paper surveys the literature on monetary policy at the zero lower bound on nominal interest rates. Certain crucial insights regarding expectations have been neglected in recent research in this field. Taking this into account, the interactions between demand and supply shocks appear crucial...