good inflation. In addition, the Ramsey optimal monetary policy can be approximated reasonably well with a Taylor …-type interest rate rule with weights on both inflation rates and output. -- Inflation and Output Persistence ; Monetary Policy …

shocks and supply shocks inflation stabilization imposes high welfare costs. At the same time, stabilizing nominal wages …

We assess the effects of financial shocks on inflation, and to what extent financial shocks can account for the … shocks through sign restrictions. Our main finding is that expansionary financial shocks temporarily lower inflation. This … during the latest financial crisis. We then explore the transmission channels of financial shocks relevant for inflation, and …

anticipation of a future cost-push shock leads to a higher welfare loss than an unanticipated shock. A welfare gain from the … anticipation of a future cost shock may only occur if prices are sufficiently flexible. We show analytically that this result holds …

restrictions which are not rejected by the data - the cost channel helps to generate an initial rise of inflation after a monetary …

policy analysis, researchers should use a menu cost model like ours or at least a third, theory-based shortcut: set the Calvo …

permanent shifts of the exchange rate and the price level if a central bank anchors long-run inflation expectations. In line … the price level to a temporary risk shock are permanent. Our theoretical discussion shows that adopting a credible long …-run price level target rather than a long-run inflation target avoids these permanent shifts of the exchange rate and the price …