are consistent with the behavior of inflation. We label these deviations the output gap. In order to pin-down the features … of the model, we evaluate the accuracy of real-time inflation forecasts from different model specifications. The version … that forecasts inflation best implies that after the 2011 sovereign debt crisis the output gap in the euro area has been …

and sometimes the unconditional means of the nominal rate, inflation and the output gap are strongly affected by …

inflation targeting result in a binding lower bound one-fourth of the time as well as inflation and output exhibiting large … purchases. Makeup strategies, especially average inflation targeting with a long averaging window, perform better than inflation …

equilibrium real rate using an estimated DSGE model for the euro area. We find that simple feedback rules that implement inflation … targeting result in a binding lower bound one-fourth of the time as well as inflation and output exhibiting large downward … purchases. Makeup strategies, especially average inflation targeting with a long averaging window, perform better than inflation …

price business cycle models. We find that modelling firm-specific capital markets greatly reduces the response of inflation … a less volatile, as well as more persistent series for inflation than those which assume an economy wide market for …

This study assesses the degree of anchoring, i.e. stability, of long-term inflation expectations in the Euro area based … evolution of the entire distribution of inflation expectations in the long and medium term points to substantial downside risks …

symmetric rest of the world and a simpli ed set of equations for energy-exporting countries. Calibration of the model is done …