The resurgence of inflation since the late 2021 is now accompanied by a reversal of prospects of growth, reviving fears … prominent role is played by the fall of households' purchasing power, and hence consumption, owing to the inflation shock visà … inflation surprises, independent of restrictive monetary policy, is not present in the standard New Keynesian models for …

This paper considers the problem of optimal long run monetary policy. It shows that optimal inflation policy involves … trading off two quite different considerations. First, increases in the rate of inflation tax the holding of many balances … of inflation raise capital intensity. As long as the economy has a capital stock short of the golden rule level …

We examine the transmission mechanism of monetary policy to inflation markets. We decompose monetary policy shocks in … conventional monetary policy affects long-term market-based inflation compensation through the communication channel, while the … unconventional monetary policy affects short-term market-based inflation compensation through the policy channel. Our analysis also …