We develop a model that can explain the evolution of trend inflation in the United States in the three decades before … inflation arises endogenously and has these determinants: the strength with which the central bank responds to inflation, the … degree of uncertainty about monetary policy perceived by the private sector, and, if it exists, the inflation target. Given …

This paper explores the impact of the adoption of inflation targeting (IT) on the dynamics of city-level inflation in … Korea using both aggregate and sector-level data. When looking at aggregate regional inflation, we find that the mean … the literature. We also note a narrowing of the dispersion of regional inflation across cities and a greater degree of …

We explain why the macroeconomic effects of shocks to inflation of the same size, but opposite sign, are not … necessarily symmetric. All in all, the costs of deflation and disinflation tend to exceed those of inflation due to the presence … borrowing limits. When these constraints are binding, they can prevent monetary policy from closing the inflation gap, labor …

private sector inflation forecasts. But beyond the optimum people might: (1) start to attach too much weight to the … deteriorates the (perceived) quality of private sector inflation forecasts. Inflation then is set in a more backward looking manner … resulting in higher inflation persistence. By using a panel data set on the transparency of 100 central banks we find empirical …

The inability of central banks to attain their target inflation rates in recent years has raised questions about the … extent to which central banks can control the inflation process. This paper discusses the evolution of thought and evidence … since the 1960s on the determinants of inflation and the role that should be played by central banks. The paper highlights …

Inflation persistence or ‘inertia’ has important consequences for monetary policy. Inflation which does not get … influence on inflation persistence by its credibility and responses in the face of inflationary shocks. In this study, we use a … flexible, time-varying parameter approach to analyze inflation persistence in the United Kingdom and United States during 1880 …

This paper provides evidence of de-anchoring of long-term inflation expectations in the euro area based on both time … series and panel methods and data from the ECB Survey of Professional Forecasters. Long-term inflation expectations recorded … two sharp and permanent declines: the first after the 2013 disinflation, the second in early 2019. Long-term inflation …

tolerance range policies, characterized by a stronger reaction of the centralbank to inflation when inflation lies outside the … strong reaction, when inflation is far fromthe target, is required to compensate a moderately lower reaction within tolerance …