different versions of new Keynesian Phillips curve for capturing dynamics of CPI inflation. Estimation of different formulations …Standard theory of consumer behavior stands on the maxim of utility maximization. Optimizing behavior of consumer is … achieved by maximization of utility subject to budget constraint. An increase in inflation that is not accompanied by …

In the Eurozone price stickiness differs among countries. I explore its consequences on the optimal rate of inflation … in a two-country model. On the one hand, with local currencies an inflation tax is partly imposed on the foreign country … optimal inflation is positive, ii) in a monetary union the first motive is absent and the optimal inflation is negative and …