The important place that currency and bank credit have in the economy, give us the right to indicate them as major factors in determining business cycles. Starting from Mr. R. Hawtrey's famous statement ""The trade cycle is a Purely Monetary Phenomenon"", the paper aims to offer some guidelines...

With recovery from the global financial crisis in 2009 and 2010, inflation emerged as a major concern for many central banks in emerging Asia. We use data observed at mixed frequencies to estimate the movement of Chinese headline inflation within the framework of a state-space model, and then...

The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage rigidities, despite the fact that these rigidities now figure prominently in workhorse macroeconomic models. We therefore integrate staggered price- and wage-setting into an...

An alternative interpretation of trade imbalances between member countries of the European Monetary Union is put forward with respect to Blanchard and Giavazzi (2002). It is argued that one of the causes of the present imbalances in foreign accounts lies in disparities as regards the...

Monetary policy rules have been considered as fundamental protection against inflation. However, empirical evidence for a correlation between rules and inflation is relatively weak. In this paper, we first discuss likely causes for this weak link and present the argument that monetary commitment...

In both the canonical and many extended versions of the New Keynesian model, optimal monetary policy under commitment implies price-level stationarity as long as expectations are rational. We show that this is no longer the case if the central bank and private agents make decisions before...

‘Modern’ Phillips curve theories predict inflation is an integrated, or near integrated, process. However, inflation appears bounded above and below in developed economies and so cannot be ‘truly’ integrated and more likely stationary around a shifting mean. If agents believe inflation...

The purpose of this paper is to provide a novel look at the evolution of inflation dynamics in selected Central European (CE) countries. We use the lens of the New Keynesian Phillips Curve (NKPC) nested within a time-varying framework. Exploiting a time-varying regression model with stochastic...

La consideración de la prima de riesgo de inflación en la ecuación de Fisher y los cambios de régimen inflacionario en Colombia durante los últimos años nos permiten examinar la hipótesis de linealidad para los diferenciales esperados de inflación entre 6 y 12 meses adelante construidos...

In this study, the relationship between inflation and economic growth is investigated. Perspectives on the relationship between inflation and economic growth focus on three points in the literature on this issue. The first view argues that there is a positive relationship between inflation and...