This paper examines the recent increase of the measured inflation rate to assess the degree to which the acceleration … pandemic relief. Some have attributed the inflation to excess demand, most notably Larry Summers, who had warned that the …, recovery would have been sufficiently slow to minimize inflation pressure. We closely examine the main contributors to rising …

, we study the implications of different inflation regimes on the racial unemployment gap. Higher trend inflation increases …

-kinked demand schedule for goods produced by firms. Our model can jointly account for the modest decline in inflation during the … Great Recession and the surge in inflation post-COVID-19. Because our model implies a stronger transmission of shocks when … inflation is high, it generates conditional heteroskedasticity in inflation and inflation risk. Hence, our model can generate …

This paper shows how endogeneous inflation inertia is generated by a simple modificaton of the quadratic adjustment … cost structure faced by economic agents. We derive the pertinent inflation relationships based on purely nominal rigidities …

cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions … employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

found to help rationalizing the hump-shaped response of inflation, without resorting to the counterfactual assumption of …

-have been carried out at no cost to output. After suggesting a new methodology that allows for long-lived effects and inflation … combination of circumstances-i.e. capital inflows, structural reforms and the peculiar recent inflation history-can explain that …

and disadvantages of the various output gap measures. First, I examine the usefulness of the output gap for inflation …

cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions … employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …