This revised second edition of Monetary Policy, Inflation, and the Business Cycle provides a rigorous graduate … for the analysis of monetary policy and its implications for inflation, economic fluctuations, and welfare. A backbone of … inflation-targeting policies. New material includes labor and financial market frictions, the zero lower bound on nominal …

. Our analysis improves upon existing work by endogenising the volatility of both output and inflation. Improved …

When inflation picks up, central banks are most concerned that the de-anchoring of inflation expectations and the … ignition of wage-price spirals will trigger inflation dynamic instability. However, such scenarios do not materialize in the … updated according to the actual inflation process, with indexed wages, and persistent inflation shocks. In these cases, a more …

Analyses a New Keynesian model linearised around a possibly positive trend inflation rate. The trend inflation, i ….e. target inflation rate, is brought about either by a forward-looking or contemporaneous Taylor rule. Technical analysis of … versions of trend-inflation dependent price-setting frequencies. Like in many other studies, welfare considerations do not …