We develop a theoretical model that features a business cycle-dependent relation between output, price inflation and … inflation expectations, augmenting the model by Svensson (1997) with a nonlinear Phillips curve that reflects the rationale … pronounced convex relationship between inflation and the output gap, meaning that the co-efficient in the Phillips curve on the …

There is no consensus over the importance of “global forces” on inflation. This study explores the role of structural … breaks in the inflation process, and their timing, whether it is common across countries, and the extent to which ‘global … forces' are relevant. Three conclusions stand out. Global inflation impacts inflation in both AE and EME, but the impact is …

In this paper we investigate dynamics of global inflation and short-run inflation expectations. We estimate a global … inflationary pressure that could drive up inflation expectations: domestic aggregate demand and supply shocks as well as a global … increase in oil price inflation. Our results indicate that inflation expectations tend to increase as inflation accelerates …

The relationship central to most inflation models, between slack and inflation, seems to have weakened. Do we need a …-cycle decomposition - to show that inflation models should more explicitly and comprehensively control for changes in the global economy … rates, and producer price competition can all significantly affect inflation, even after controlling for the standard …

This note examines Malaysia's inflation dynamics as influenced by changes in the policy environment and economic …, Malaysia's inflation dynamics are expected to change, and this will have implications for the central bank's policies ….Full Publication: 'http://ssrn.com/abstract=2870167' Inflation Mechanisms, Expectations and Monetary Policy …

Low and unresponsive inflation has been termed a “puzzle.” The paper describes a formula for which these conditions … variability of forward long-term inflation. Its U.S. inflation forecasts are comparable to recognized leaders in accuracy with … potential applicability to international economies as well.Inflation Elasticity, the responsiveness of inflation to monetary …

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 …

becomes nonlinear when inflation is “low”—which our baseline model defines as less than 3 percent. The nonlinear curve is … further increases in economic slack have little effect on inflation. This finding is consistent with evidence of downward … nominal wage and price rigidity. When inflation is high, the Phillips curve is linear and relatively steep. These results are …

A number of central banks in advanced countries use ranges, or bands, around their inflation target to formulate their … tolerance range policies, characterized by a stronger reaction of the central bank to inflation when inflation lies outside the … unfavorable: a very strong reaction, when inflation is far from the target, is required to compensate for a moderately lower …