Much empirical evidence suggests that wage increases do not lead to inflation. This paper demonstrates that a 2-sector … an increased wage-markup on the inflation rate in both the goods sector and the service sector. The mechanisms we …

findings survive three identification strategies and across subsamples. Then, they are rationalized via the estimation of a two …

While the relationship between inflation and relative price variability (RPV) has been widely investigated in developed … differently to different inflation regimes across the ECOWAS region, determining the inflation threshold that would minimize the … distortionary impact of expected inflation on RPV in the region. Using the Panel Smooth Transition Regression (PSTR) model over the …

costs. I analyze how labor market institutions affect the macroeconomic dynamics, in particular, wage and inflation dynamics …, inflation and wages become less volatile and more persistent. I also find that the level of these labor market institutions … affect how wages and inflation respond to exogenous shocks, in particular, to productivity and monetary policy shocks. I …

commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and … interest rates. Liquidity trap (LT) episodes are longer, however, the impact of interest rate policy commitments on inflation …

This paper conducts a structural analysis of inflation persistence in the United Kingdom between 1965-2009. I allow for … and stochastic shock volatility. The first policy regime responds passively to movements in inflation, adjusting the … other regime responds actively to inflation and places less weight on exchange rate movements. This regime is present for …

The correlation between persistent changes in the markup in one sector of an economy and the inflation rate is …. We find that the correlation is in general positive under an exogenous money growth rule as well as under an inflation … targeting rule. That is, a decrease of the markup leads to a decrease in the CPI-inflation rate. However, if inflation is …

The objective of this research paper is to examine the relationship between relative price variability and inflation by … demonstrated that there is a probable relationship between inflation (DPt) and both un-weighted measures of price variability (VPt …

frequency vector autoregression (VAR). It shows that potential causalities for inflation, relative price variability, relative …