economies, we find that the main driver of consumer price inflation is the global demand shock. A negative global demand shock … pass-through following this shock is of opposite sign to what is usually expected. Finally, exogenous shocks to the …

In this paper, we examine the extent to which monetary policy should respond to movements in sectoral inflation rates … for different responses to inflation in different sectors outperforms a rule which just targets aggregate CPI, as does a … rule that responds only to non food and energy inflation. However, we find that the optimal sectoral rule only leads to a …

for the persistence and volatility of "reset price inflation." Reset price inflation is the rate of change of all desired … construct an empirical measure of reset price inflation. We find that time-dependent models imply unrealistically high … persistence and stability of reset price inflation. This discrepancy is exacerbated by adding strategic complementarities, even …