We study how domestic and global output gaps affect CPI inflation. We use a New Keynesian Phillips curve framework …Q1-2017Q4 period. We find broadly that both global and domestic output gaps are significant drivers of inflation both in … output gaps on inflation …

We study how domestic and global output gaps affect CPI inflation. We use a New-Keynesian Phillips curve framework …1-2017Q4 period. We find broadly that both global and domestic output gaps are significant drivers of inflation both in … output gaps on inflation …

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 …

to financial intermediaries. Injections to families produce an inflation tax while injections directly to financial … intermediaries provide an inflation subsidy that improves output, consumption, and welfare. This model helps explain why monetary …

"harmful inflation" regime for higher nominal GDP growth rates, these results have strong implications for guiding recent …

price model a 'weak' central bank response to inflation generates sunspot fluctuations, the consequences of pooling … of inflation persistence had not been investigated. Using Monte Carlo simulations from a purely forward-looking model …, this paper shows that indeterminacy can introduce a sizable persistence in the process of inflation. On the reduced form …

inflation, we examine models of inflation that do and do not use the output gap. The Phillips curve, which relates inflation to … real activity, is regarded as the maintained theory of inflation. Models of inflation without the output gap include the … paper examines ten different models of inflation and estimates sixty-seven different specifications, some of which …

This paper examines the demographic determinants of inflation expectations in South Africa. Five surveys covering the … ahead inflation expectations. In doing so we uncover clear behavioural biases in how respondents view the inflation outlook …. For example, education and income tend to be inversely related to inflation expectations. This is consistent with the …

financial variables in the monetary policy rule can bring macroeconomic benefits in terms of lower volatility of inflation and … implied volatilities of inflation and output. Second, the usefulness of the augmented monetary policy rule is the most …