. Potential output is seen as sustainable; yet experience indicates that output may be on an unsustainable path even if inflation …

This paper investigates various output gap measures in a simple inflation forecasting framework. Reflecting the … pressures, including a gap could improve the accuracy of autoregressive inflation forecasting. This assertion is tested in a …

Variable and high rates of price inflation in the 1970s and 1980s led many countries to delegate the conduct of … central banks also adopted an explicit inflation target to further strengthen credibility and facilitate accountability. One …-run inflation target, an important question is whether its heavy focus on resource utilization can be justified. The authors …

We incorporate adaptive learning-based inflation expectations in an Unobserved Components model in order to study the … link between inflation and the output gap. The forward-looking New Keynesian Phillips curve serves as the backbone for … modeling inflation dynamics. We find that learning based inflation forecasts not only shadow survey expectations in the pre …