The failure to predict the surge in inflation in 2021 raises questions about whether we are better equipped to … anticipate a future decline in inflation. What tools do we intend to use for predicting the trajectory of inflation? Are we still … primarily relying on survey data regarding inflation expectations, and are we still employing a Calvo-type structure to model …

In the Eurozone price stickiness differs among countries. I explore its consequences on the optimal rate of inflation … in a two-country model. On the one hand, with local currencies an inflation tax is partly imposed on the foreign country … optimal inflation is positive, ii) in a monetary union the first motive is absent and the optimal inflation is negative and …

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 …

individual-goods price adjustments, have stock returns that are always positively correlated with inflation. The cross … inflation is positive, agents are willing to pay a premium to hold assets whose returns covary negatively with inflation. In … contrast, we empirically find that the dispersion in the correlation between stock returns and inflation is about 100 times …

adjustment. As a result, the response of inflation to nominal shocks is both sluggish and hump-shaped. The model can also … qualitatively capture a number of stylized facts about price setting at the micro level and inflation at the macro level …